PROBLEMS: SET A P12-1A You are provided with the following information regarding

Question

PROBLEMS: SET A P12-1A You are provided with the following information regarding events that occurred at Distinguish among operating Moore Corporation during 2017 or changes in account balances as of December 31, 2017· investing, and financing activities (L012),AP If Operating, Did It of Cash Increase or Decrease Flow Section Reported Cash from Affected Operating Activities? Statement (a) Depreciation expense was $80,000 (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 tockholders Paid $4,000 cash dividend to common stockholders nts Receivable account decreased $10,000. (h) Inventory increased $2,000. (i) Received $100,000 from issuing bonds payable. 0) Acquired equipment for $16,000 cash.

Explanation / Answer

Statement of Cash Flow Section Affected If Operating , Did it Increase or Decrease Reported Cash from Operating Activities Amount Cash Inflow/Outflow Reasons a. Depreciation expense was $ 80000 Operating Increase/Added to Net Income 80000 Inflow Outflow saved b. Interest payable account increased $ 5000 Operating Increase/Added to Net Income 5000 Inflow Outflow saved c. Received $ 26000 from sale of plant assets Investing Increase 26000 Inflow Cash received d. Acquired land by issuing common stock to seller Non-cash e. Paid $ 17000 cash dividend to preferred stockholders Financing Decrease -17000 Outflow Cash spent f. Paid $ 14000 cash dividend to common stockholders Financing Decrease -14000 Outflow Cash spent g. Accounts Receivable account decreased $ 10000 Operating Increase/Added to Net Income 10000 Inflow Cash received h. Inventory increased $ 2000 Operating Decrease/Subtracted from N/I -2000 Outflow Cash spent i. Received $ 100000 from issuing bonds payable Financing Increase 100000 Inflow Cash received j. Acquired equipment for $ 16000 cash Investing Decrease -16000 Outflow Cash spent NET EFFECT 172000

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