The loss on the sale of equipment of $25 will appear in cash flow for operating activities section.
What is a cash flow statement?
The cash flow statement is a financial statement that gives aggregate data regarding the cash inflows that a company receives.
The loss on sales of equipment will be:
Cost of equipment = $500
Less accumulated depreciation = $375
Less sale of equipment = $25
Here, the loss on the sale of equipment of $25 will appear in cash flow for operating activities section.
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