QUESTION 11 An analysis of the machinery accounts of Sierra Company for 2021 is as follows: Machinery, Net of Accumulated Accumulated Mashinery Depreciation Depreciati Balance at January 1, 202) $500,000 $125,000 $375,000 Purchases of new machinery in 2021 for cash 200,000 200,000 Depreciation in 2021 100.000 (100.000) Balance at Dec 31, 2021 $70,0,000 $225.000 $475.000 The information concerning Sierra's machinery accounts should be shown in Sierra's statement of cash flows (indirect method) for the year ended December 31, 2021, as an) A. addition to net income of $100,000 and a $200,000 decrease in cash flows from investing activities LB. subtraction from net income of $100,000 and a $200,000 decrease in cash flows from financing activities C. $200,000 decrease in cash flows from investing activities D. 5100,000 Increase in cash flows from financing activities. QUESTION 12 Slerra Company sold some of its plant assets during 2021. The original cost of the plant assets was $900,000 and the accumulated depreciation at date of sale was $340,000. The proceeds from the sale of the plant assets were $90,000. The information concerning the sale of the plant assets should be shown on Sierra's statement of cash flows (Indirect method) for the year ended December 31, 2021, as a(n) A addition of $90,000 to net income. B. subtraction from net income of $30,000 and a $90,000 increase in cash flows from investing activities C. subtraction from net income of $30,000 and a $60,000 increase in cash flows from financing activities D. addition to net income of $30,000 and a $90,000 Increase in cash flows from investing activities