An analysis of the machinery accounts of Polonius Ltd.during 2017 follows: The information concerning Polonius's machinery accounts should be shown in their statement of cash flows (indirect method)for the year ended December 31, 2017, 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.

Question

An analysis of the machinery accounts of Polonius Ltd.during 2017 follows:  The information concerning Polonius's machinery accounts should be shown in their statement of cash flows (indirect method)for the year ended December 31, 2017, 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.

Quizplus · Accepted Answer

The Answer of An analysis of the machinery accounts of Polonius Ltd.during 2017 follows:  The information concerning Polonius's machinery accounts should be shown in their statement of cash flows (indirect method)for the year ended December 31, 2017, 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.

An Analysis of the Machinery Accounts of Polonius Ltd