An analysis of the machinery accounts of Noller Company for 2015 is
as follows: Machinery, Net of Accumulatfd Machinery Depreciation
Balance at January 1, 2015 $500,000 $125,000 $375,000 Purchases
of new machinery in 2015 for cash 200,000 — 200,000 Depreciation in
2015 — 100,000 (100,000) Balance at Dec. 31, 2015 $700,000
$225,000 $475,000. The information concerning Noller's machinery
accounts should be shown in Noller's statement of cash flows
(indirect method) for the year ended December 31, 2015, as a(n):______.
A. $100,000 increase in cash flows from financing activities.
B. subtraction from net income of $100,000 and a $200,000 decrease
in cash flows from financing activities.
C. addition to net income of $100,000 and a $200,000 decrease in cash
flows from investing activities.
D. $200,000 decrease in cash flows from investing activities.

Since there is a depreciation expense of $100,000 the same is added back to the net income under the operating activities section of the balance sheet

While the investing activities refer to the purchase and sale of long term assets where purchase shows the outflow of cash and the sale refer to the inflow of cash

So the $200,000 reflects the purchase of machinery and the same is recorded in the investing activities as a negative sign