In May 2021, a part of eagle company factory got destroyed in a fire. The fire happened at night, therefore no one was injured. However, some machineries with book value of $500,000 got destroyed. eagle Company claimed the loss to the insurance company, which estimated that they would pay $300,000 in october 2021 after the investigation is concluded. In preparation of eagle Companys may 2021 cash flow statement,

Select one:

a. it does not need to be included in cash flow statement.

b. the residual loss of $200,000 machineries needs to be included in cash flow statement.

c. the expected receipt of $300,000 needs to be included in cash flow statement.

d. no correct answer

e. the loss of $500,000 machineries needs to be included in cash flow statement.