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xyz co. sold equipment that originally cost $14,000 with accumulated depreciation of $11,000 for $4,000 cash, resulting in a gain of $1,000. which of the statements below are correct regarding the treatment of this transaction on the statement of cash flows for the current period? (check all that apply.)

Respuesta :

$1,000 is deducted from operating activities; $4,000 is a cash inflow in investing activities.

What are operating activities?

Operating activities are all the things a business undertakes to consistently advertise its goods and services. Non-operating activities are one-time occurrences that may have an impact on sales, costs, or cash flow but are unrelated to the regular, main activity of the company.

What are investing activities?

Buying tangible assets, investing in securities, or selling securities or assets are all examples of investing activity. If management is investing in the long-term health of the company, negative cash flow from investing operations could not be a bad indicator.

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