Illinois Woodworking Company is preparing its statement of cash flows using the indirect method. During the year, Illinois sold equipment for $5,990 cash. The net book value of the asset was $4,560. Which of the following statements is true?

a.) the cash receipt of $5,990 is shown as a positive cash flow in thr investing activities section

b.) the gain on sale of $1,430 is shown as a positive cash flow in the financing activities section

c.) the book value of the asset sold is shown as a negative cash flow in the investing activities section

d.) the gain on sale of $1,430 is added back to net income in the operating activities section