Lionworks, Inc. sold a machine for $38,000, which represents a gain of $6,500. How would this transaction be reflected on the Statement of Cash Flows under the indirectmethod?

A.

An addition of $6,500 to net income in the operating section and a cash inflow of $38,000 in the investing section

B.

A cash inflow of $38,000 in the operating section

C.

A cash inflow of $31,500 in the investing section

D.

A subtraction of $6,500 from net income in the operating section and a cash inflow of $38,000 in the investing section