Final answer:
The sale of plant assets by Star Media should be reported in the Investing cash flows section of the statement of cash flows. Without the exact sale proceeds, the correct cash receipt cannot be definitively determined, but options suggesting financing cash flows can be eliminated.
Step-by-step explanation:
The sale of plant assets by Star Media should be reported under the Investing cash flows section of the statement of cash flows. When a company sells an asset like plant equipment, it is disposing of a long-term investment, which is why it appears under investing activities. The amount reported for the sale would be the cash actually received from the transaction.
To determine the cash receipt from the sale of the plant assets, we need to calculate it based on the information provided. Since we know that Star Media incurred an $11,000 loss on the sale, this loss would have to be subtracted from the cash proceeds to find the cash inflow from the sale. However, the actual cash proceeds are not detailed in the provided information, hence we cannot conclude the exact figure to report without additional data about the original book value and the accumulated depreciation of the assets sold.
Without the exact sale proceeds given, we cannot definitively choose between options B, C, or D. Option A can be eliminated because the cash receipt from the sale of plant assets is reported under investing activities, not financing activities. Therefore, the correct report for the cash receipt from the sale should be labeled as Investing cash flows but the exact amount cannot be determined with the information provided.