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What impact does the sale of equipment have on the statement of cash flows? Increase in cash from investing activities Increase in cash from operating activities Decrease in cash from operating activities Increase in cash from financing activities

Question

What impact does the sale of equipment have on the statement of cash flows? Increase in cash from investing activities Increase in cash from operating activities Decrease in cash from operating activities Increase in cash from financing activities

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Solution

The sale of equipment is typically classified under investing activities in the statement of cash flows. Therefore, when a company sells equipment, it results in an increase in cash from investing activities. This is because the company is generating cash by selling off its assets.

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