An Analysis of the Machinery Accounts of Noller Company for 2011

question 20

Multiple Choice

An analysis of the machinery accounts of Noller Company for 2011 is as follows:

The information concerning Noller's machinery accounts should be shown in Noller's statement of cash flows (indirect method) for the year ended December 31, 2011, as a(n)

• A)subtraction from net income of $100,000 and a $200,000 decrease in cash flows from financing activities.
• B)addition to net income of $100,000 and a $200,000 decrease in cash flows from investing activities.
• C)$100,000 increase in cash flows from financing activities.
• D)$200,000 decrease in cash flows from investing activities.

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