An analysis of the machinery accounts of Jezak Company for 2014 is as follows:

Machinery Accum. Dep'n Net Book Value

Balance at January 1, 2014 $1,650,000 $850,000 $800,000

Purchases of new machinery

in 2014 for cash 425 425

Depreciation in 2014 275 -275

Balance at Dec. 31, 2014 $2,075,000 $1,125,000 $950,000

The information concerning Jezak's machinery accounts should be shown in Jezak's statement of cash flows (indirect method) for the year ended December 31, 2014, as a(n)

A) subtraction from net income of $425,000 and a $275,000 decrease in cash flows from financing activities.

B) addition to net income of $275,000 and a $425,000 decrease in cash flows from investing activities.

C) $425,000 increase in cash flows from financing activities.

D) $150,000 decrease in cash flows from investing activities.