Sonesta farm equipment company sold equipment for cash. the income statement shows a loss on the sale of $9,000. the net book value of the asset was $30,900. which of the following statements describes the cash effect of the transaction?
a. positive cash flow of $39,900 from financing activities
b. negative cash flow of $21,900 for operating activities
c. negative cash flow of $21,900 for financing activities
d. positive cash flow of $21,900 from investing activitie

D) positive cash flow of $21,900 from investing activities

Explanation:

To calculate Sonesta's cash flow associated to this transaction we can use the following formula:

cash flow = net book value of the asset - loss on sale of the asset

cash flow = $30,900 - $9,000 = $21,900

The cash flow was generated by an investing activity since Sonesta sold an asset, not its products.

answer; ///i believe the correct   answer is (e) transformational;

urban company reports the following information regarding its production cost: units produced 37,000 units direct labor $ 30 per unit direct materials $ 35 per unit variable overhead $ 237,000 in total fixed overhead $ 127,000 in total