Final answer:
The sale of equipment is indeed part of a company's cash flows from investing activities. It results in cash inflows that can be used for reinvestment or other purposes, and as such, should be considered a positive cash flow from investing.
Step-by-step explanation:
Cash flows from investing activities are part of a company's cash flow statement which tracks the amount of money entering and leaving a company. These activities typically include the purchase and sale of long-term assets such as property, plant, and equipment or investment securities. When a company reinvests its profits into buying new equipment, expanding operations, or upgrading technology, these outlays are recorded as negative cash flows from investing activities. Conversely, when a company sells equipment, it's considered a positive cash flow from investing because it results in cash coming into the business.
Therefore, the sale of equipment does constitute a cash flow from investing activities. In fact, the choice D from the multiple-choice options provided in the student's question, which refers to the sale of equipment, is an important part of investing cash flows because it typically represents cash inflows for a company. The sale of equipment provides funds that can be used for further reinvesting into the business or other purposes.