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Doonan Company Machinery Accounts

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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 (indirect method) 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.

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This solution is comprised of a detailed explanation to analyze of the machinery accounts of Doonan Company for 2008.

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An analysis of the machinery accounts of Doonan Company for 2008 is as follows:

The information concerning Doonan's machinery accounts should be ...

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