Reference no: EM132767490
Question: An analysis of the machinery accounts of Sheridan Company for 2021 is as follows: Machinery, Net of Accumulated Accumulated
Machinery Depreciation Depreciation
Balance at January 1, 2021 $501000 $129000 $372000
Purchases of new machinery in 2021 for cash 207000 - 207000
Depreciation in 2021 - 110000 (110000 )
Balance at Dec. 31, 2021 $708000 $239000 $469000
The information concerning Sheridan's machinery accounts should be shown in Sheridan's statement of cash flows (indirect method) for the year ended December 31, 2021, as a(n)
$207000 decrease in cash flows from investing activities.
addition to net income of $110000 and a $207000 decrease in cash flows from investing activities.
$110000 increase in cash flows from financing activities.
subtraction from net income of $110000 and a $207000 decrease in cash flows from financing activities.