An analysis of the machinery accounts of Doonan Company for 2008 is as follows:
The information concerning Doonan's machinery accounts should be shown in Doonan's statement of cash flows for the year ended December 31, 2008, 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 Doonan Company for 2008 is as follows:
 The information concerning Doonan's machinery accounts should be shown in Doonan's statement of cash flows for the year ended December 31, 2008, 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 Doonan Company for 2008 is as follows:
 The information concerning Doonan's machinery accounts should be shown in Doonan's statement of cash flows for the year ended December 31, 2008, 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 Doonan Company for 2008