Kevin Woodworking Company is preparing its statement of cash flows using the indirect method. During the year, Kevin sold equipment for $5,990 cash. The net book value of the asset was $4,970. Which of the following statements is true.

.

The gain on sale of $1,020 is shown as a positive cash flow in the financing activities section.

B.

The gain on sale of $1,020 is added back to net income in the operating activities section.

C.

The book value of the assets sold is shown as a negative cash flow in the investing activities section.

D.

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