Answer
(c) Receipt of cash from the sale of equipment.
Work Step by Step
Investing activities involve buying or selling long-term assets such as:
- Property, plant, and equipment
- Investments in other companies
Financing activities include:
- Issuing bonds or stock (a, b)
Operating activities include:
- Paying suppliers for inventory (d)
Thus, cash received from selling equipment is classified as an investing cash inflow.
Correct answer: (c) Receipt of cash from the sale of equipment.
