Acca mock financial Accounting

 

30

 

Hatch Co is preparing its statement of cash flows for the year ended 30 April 20X4. During 

the year, it disposed of a vehicle with a carrying amount of $5,000 at the date of disposal 

for proceeds cash proceeds of $3,000. The vehicle had been purchased at a cost of $9,000.  

What amounts should be disclosed within the ‘Investing Activities’ classification of the 

statement of cash flows in respect of the vehicle disposal? 

A 

A loss on disposal of $2,000 and a cash inflow of sale proceeds of $3,000 

B 

A cash inflow of sale proceeds of $3,000 only 

C 

A loss on disposal of $2,000 only 

D 

No items are relevant for classification as ‘Investing Activities’