Problem 12-1A

You are provided with the following information regarding events that occurred at Moore Corporation during 2017 or changes in account balances as of December 31, 2017. Moore prepares its statement of cash flows using the indirect approach. Complete the first column of the table, indicating whether each item affects the operating activities section (that is, the item would be listed among the adjustments to net income to determine net cash provided by operating activities under the indirect approach), investing activities section, financing activities section, or is a noncash transaction reported in a separate schedule. For those items classified as operating activities, indicate whether the item is added or subtracted from net income to determine net cash provided by operating activities.

				(1) Statement of Cash Flow Section Affected		(2) If Operating, Did It Increase or Decrease Reported Cash from Operating Activities?
(a)		Depreciation expense was $80,000.		Financing ActivityInvesting ActivityNoncash TransactionOperating Activity		AddedNot ApplicableSubtracted
(b)		Interest Payable account increased $5,000.		Financing ActivityInvesting ActivityNoncash TransactionOperating Activity		AddedNot ApplicableSubtracted
(c)		Received $26,000 from sale of plant assets.		Financing ActivityInvesting ActivityNoncash TransactionOperating Activity		AddedNot ApplicableSubtracted
(d)		Acquired land by issuing common stock to seller.		Financing ActivityInvesting ActivityNoncash TransactionOperating Activity		AddedNot ApplicableSubtracted
(e)		Paid $17,000 cash dividend to preferred stockholders.		Financing ActivityInvesting ActivityNoncash TransactionOperating Activity		AddedNot ApplicableSubtracted
(f)		Paid $4,000 cash dividend to common stockholders.		Financing ActivityInvesting ActivityNoncash TransactionOperating Activity		AddedNot ApplicableSubtracted
(g)		Accounts Receivable account decreased $10,000.		Financing ActivityInvesting ActivityNoncash TransactionOperating Activity		AddedNot ApplicableSubtracted
(h)		Inventory increased $2,000.		Financing ActivityInvesting ActivityNoncash TransactionOperating Activity		AddedNot ApplicableSubtracted
(i)		Received $100,000 from issuing bonds payable.		Financing ActivityInvesting ActivityNoncash TransactionOperating Activity		AddedNot ApplicableSubtracted
(j)		Acquired equipment for $16,000 cash.		Financing ActivityInvesting ActivityNoncash TransactionOperating Activity		AddedNot ApplicableSubtracted

Click if you would like to Show Work for this question:

Open Show Work

LINK TO TEXT

LINK TO TEXT

Question Attempts: Unlimited

SAVE FOR LATER

SUBMIT ANSWER

Copyright 2000-2017 by John Wiley & Sons, Inc. or related companies. All rights reserved.