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) (2)
Statement of Cash If Operating, Did It
Flow Section Affected Increase or Decrease
Reported Cash from
Operating Activities
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 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.