Catalina Company sold used equipment for a cash amount equaling its carrying amount for both book and tax purposes. A few days later, Catalina replaced the equipment by paying a cash down payment and signing a note payable for new equipment. The cash down payment exceeded the cash received for the old equipment. How should these equipment transactions be reported in the investing activities section of Catalina 's statement of cash flows? A) Cash outflow equal to the down payment less the cash received. B) Cash outflow equal to the down payment and note payable less the cash received OC) Cash inflow equal to the cash received and a cash outflow equal to the down payment and note payable D) Cash inflow equal to the cash received and a cash outflow equal to the down payment