Financial statements - Income statement for 20X4 and Comparative Balance Sheet for diving equipment manufacturer Lincoln Corp for December 31, 20X4 and 20X3 Lincoln Corp. - Income Statement as of December 31st, 20X4 Revenue $5,000 Cost of Goods Sold $3,200 Gross Profit $1,800 Operating expenses $1,350 Operating Profit $ 450 Loss on sale of equipment $20 Income tax expense $180 Profit for 2012 $250 Lincoln Corp. - Balance Sheet - December 31

	20X4	20X3
Assets:
Cash	$2,350	$1,800
Accounts Receivable	450	1,000
Inventory	800	700
Prepaid expenses	40	80
Equipment	2,500	1,500
Accumulated Depreciation	(1,350)	(1,000)
Total Assets	$4,790	$4,080
Liabilities & Shareholders' Equity
Accounts Payable	$680	$350
Operating expenses payable	210	100
Income Taxes Payable	120	0
Dividends Payable	50	100
Long term notes Payable	300	70
Common Shares	2,500	2,500
Retained Earnings	930	960
Total Liabilities & Shareholders' Equity	$4,790	$4,790

Additional Information for Lincoln Corp: Operating expenses for 20X4 included depreciation for $500 Accounts payable relate exclusively to the purchase of inventory Machine with a historical cost of $200 was sold at a loss of $20 A new machine was purchased during the year for $1,200 Dividends were declared Long term notes payable were issued

Gain realized on the sale of capital assets should be:

Included as a positive amount in the financing section of the statement of cash flows

Included as a positive amount in the operations section of the statement of cash flows

Included as a positive amount in the investment section of the statement of cash flows

Not included in the cash flow statement because it does not imply an outflow of cash

None of the other alternatives are correct