Marvin Industries owns a piece of equipment with a cost of $148,000 and accumulated depreciation of $121,000. The equipment is sold for $52,200 cash. The amount that should be reported as a cash inflow from investing activities is:

 

Cash inflow from investing activities = $52,200

Step-by-step explanation

Cash inflow from investing activities = Cash proceeds from the sale of equipment

= $52,200

The investing activity section includes only the cash flow from the purchase or sale of fixed assets, any profit or loss on the sale is adjusted in the operating activity section. Cash paid to purchase of fixed assets is treated as cash outflows whereas cash proceeds from the sale of fixed assets is treated as cash inflows.