Sonesta Company Sold Equipment for Cash

question 64

Multiple Choice

Sonesta Company sold equipment for cash. The income statement shows a loss on sale of $7,000. The net book value of the asset prior to the sale was $26,900. Which of the following statements describes the cash effect of the transaction?

• A)positive cash flow of $33,900 from financing activities
• B)negative cash flow of $19,900 for operating activities
• C)negative cash flow of $19,900 for financing activities
• D)positive cash flow of $19,900 from investing activities

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