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Increase in cash flows from financing activities

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Reference no: EM132203666

Ando Company sold some of its plant assets during 2017. The original cost of the plant assets was $500,000 and the accumulated depreciation at date of sale was $325,000. The proceeds from the sale of the plant assets were $150,000. The information concerning the sale of the plant assets should be shown on Ando's statement of cash flows (indirect method) for the year ended December 31, 2017, as a (n)

a.) addition to net income of $25,000 for gain on sale and a $175,000 increase in cash flows from investing activities.

b.) addition to net income of $25,000 for loss on sale and a $150,000 for cash proceeds as an increase in cash flows from investing activities.

c.) subtraction from net income of $150,000 for cash proceeds and a $175,000 increase in cash flows from financing activities.

d.) addition of $150,000 for cash proceeds to net income.

Reference no: EM132203666

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