An analysis of the machinery accounts of Polonius Ltd. during 2020 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, 2020, 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 2020 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, 2020, 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 2020 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, 2020, 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