ACC 557 Homework 5 Chapter 13
ACC 557 Homework 5 Chapter 13
Due Week 9 and worth
50 points
Directions: Answer the
following questions on a separate Microsoft Word or Excel document. Explain how
you reached the answer or show your work if a mathematical calculation is
needed, or both. Submit your assignment using the assignment link in
Blackboard.
Exercises
E13-3.Cushenberry Corporation had the following
transactions.
1.
Sold land (cost
$12,000) for $15,000.
2.
Issued common stock at
par for $20,000.
3.
Recorded depreciation
on buildings for $17,000.
4.
Paid salaries of
$9,000.
5.
Issued 1,000 shares of
$1 par value common stock for equipment worth $8,000.
6.
Sold equipment (cost
$10,000, accumulated depreciation $7,000) for $1,200.
Instructions
For each transaction
above, (a) prepare the journal entry, and (b) indicate how it would affect the
statement of cash flows using the indirect method.
E13-4.Gutierrez Company reported net income of
$225,000 for 2015. Gutierrez also reported depreciation expense of $45,000 and
a loss of $5,000 on the disposal of equipment. The comparative balance sheet
shows a decrease in accounts receivable of $15,000 for the year, a $17,000
increase in accounts payable, and a $4,000 decrease in prepaid expenses.
Instructions
Prepare the operating
activities section of the statement of cash flows for 2015. Use the indirect
method.
Problems
P13-3A.The income statement of Whitlock Company is
presented here.
Additional
information:
1.
Accounts receivable
increased $200,000 during the year, and inventory decreased $500,000.
2.
Prepaid expenses
increased $150,000 during the year.
3.
Accounts payable to
suppliers of merchandise decreased $340,000 during the year.
4.
Accrued expenses
payable decreased $100,000 during the year.
5.
Operating expenses
include depreciation expense of $70,000.
Instructions
Prepare the operating
activities section of the statement of cash flows for the year ended November
30, 2015, for Whitlock Company, using the indirect method.
P13-7A.Presented below are the financial statements of
Nosker Company.
Additional data:
1.
Dividends declared and
paid were $20,000.
2.
During the year equipment
was sold for $8,500 cash. This equipment cost $18,000 originally and had a book
value of $8,500 at the time of sale.
3.
All depreciation
expense, $14,500, is in the operating expenses.
4.
All sales and
purchases are on account.
Instructions
1.
Prepare a statement of
cash flows using the indirect method.
2.
Compute free cash flow.
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