Business, 31.03.2020 04:20, shayneseaton
You are provided with the following information regarding events that occurred at Moore Corporation during 2020 or changes in account balances as of December 31, 2020.
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 (O) (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 (I), financing activities section (F), or is a noncash (NC) transaction reported in a separate schedule. For those items classified as operating activities (O), indicate whether the item is added (A) or subtracted (S) from net income to determine net cash provided by operating activities.
Transaction Statement of Cash If Operating, did it
Flow Section Affected increase/decrease
Reported cash from
Operating activities?
(a) Depreciation expense was s80,000
(b) Interest Payable account increased-
$5,000
(c) Received $26,000 from sale of plant-
assets.
(d) Acquired land by issuing common-
stock to seller.
(e) Paid $17,000 cash dividend to -
preferred stockholders
(f) Paid $4,000 cash dividend to common-
stockholders.
(g) Accounts Receivable account -
decreased $10,000
(h) Inventory increased $2,000
(i) Received $100,000 from issuing-
bonds payable.
(j) Acquired equipment for $16,000 cash.
Answers: 2
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