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Harper Corporation acquired 80,000 of the 200,000 outstanding shares of Moore Corporation on April 1,...

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Accounting

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.

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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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