Dan’s Donuts Ltd. receives cash when it sells a fixed asset. The fixed asset has a net book value of $6,000. The supporting journal entry includes a…

Dan’s Donuts Ltd. receives cash when it sells a fixed asset. The fixed asset has a net book value of $6,000. The supporting journal entry includes a “Gain on Sale” of $1,000. The cash flow statement will include

operating activities—cash provided $1,000.

operating activities—cash provided $7,000.

investing activities—cash provided $6,000.

investing activities—cash provided $7,000.