The income statement of Hope Market, Inc reported a gain from the sale of land. How are the cash flow effects of this transaction reported on the statement of cash flows if the direct method is used to prepare the Operating Activities category?
a. The entire proceeds from the sale of the land are reported as an investing activity.
b. The gain on the sale of land is reported in the Investing Activities category as a cash flow from the sale of land.
c. The entire proceeds from the sale of the land are reported as an operating activity.
d. The cash received from the sale of land is reported in the financing activity category as a cash flow from the sale of land.
a
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