JelCo's backup warehouse suffered fire damage, and had to be sold at a loss. What effect will this have on JelCo's operating cash flow?

Select an answer:

• JelCo's operating cash flow will be offset by selling the warehouse at a loss.

• JelCo's operating cash flow will be reduced because they can no longer take depreciation expense on the warehouse.

• JelCo will receive an influx of operating cash because even though it was sold at a loss, JelCo did receive cash from the sale.

• JelCo's operating cash flow will not be affected, as long as losing the warehouse did not affect sales.