ACC 557 Week 9 Homework 5
Key To Success
ACC 557 Week 9 Homework 5
ACC 557 Week 9 Homework 5. 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.
- Sold land (cost $12,000) for $15,000.
- Issued common stock at par for $20,000.
- Recorded depreciation on buildings for $17,000.
- Paid salaries of $9,000.
- Issued 1,000 shares of $1 par value common stock for equipment worth $8,000.
- Sold equipment (cost $10,000, accumulated depreciation $7,000) for $1,200.
Instructions
ACC 557 Week 9 Homework 5
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
ACC 557 Week 9 Homework 5
P13-3A. The income statement of Whitlock Company is presented here.
*PLEASE REFER TO ATTACHMENT FOR ADDITIONAL INFORMATION**
Additional information:
- Accounts receivable increased $200,000 during the year, and inventory decreased $500,000.
- Prepaid expenses increased $150,000 during the year.
- Accounts payable to suppliers of merchandise decreased $340,000 during the year.
- Accrued expenses payable decreased $100,000 during the year.
- 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.
*PLEASE REFER TO ATTACHMENT FOR ADDITIONAL INFORMATION**
Additional data:
- Dividends declared and paid were $20,000.
- 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.
- All depreciation expense, $14,500, is in the operating expenses.
- All sales and purchases are on account.
Instructions
- Prepare a statement of cash flows using the indirect method.
- Compute free cash flow
ACC 557 Week 9 Homework 5
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