The Sonesta Company Sold Equipment for Cash

question 108

Multiple Choice

The Sonesta Company sold equipment for cash. The income statement shows a loss on sale of $5,000. The net book value of the asset prior to sale was $24,000. Which of the following statements describes the cash effect of the transaction?

• A) Positive cash flow of $29,000 in investing activities
• B) Negative cash flow of $19,000 in operating activities
• C) Positive cash flow of $19,000 in investing activities
• D) Negative cash flow of $14,000 in financing activities

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