Harper Corporation acquired 80,000 of the 200,000 outstanding shares of Moore Corporation on April 1,...
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Harper Corporation acquired 80,000 of the 200,000 outstanding shares of Moore Corporation on April 1, 2019, for $400,000 and obtained significant influence. The following information concerning Moore is available on the date of acquisition:
Book Value
Fair Value
Depreciable assets (remaining life, 15 years)
$600,000
$700,000
Other assets
500,000
450,000
Total
$1,100,000
$1,150,000
Liabilities
$300,000
$320,000
Common stock
250,000
Retained earnings
550,000
Total
$1,100,000
Subsequently, Moore paid a cash dividend of $40,000 on August 31, 2019, and reported net income of $155,000 on December 31, 2019.
Prepare Harpers net cash flow from operating activities section of its 2019 statement of cash flows under the indirect method, assuming Harper reported $200,000 of net income. Ignore income taxes.
Score: 18/25 Harper Corporation Statement of Cash Flows (Partial) For Year Ended December 31, 2019 Operating Activities: Net income $200,000.00 Adjustments to reconcile net income with cash from operations: . Less: Increase in equity investment 62,000.00 Net cash provided by operating activities $138,000.00
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