ACC 557 Week 9 Homework 5 – Strayer New
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Due Week 9
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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
a) Prepare a statement of cash flows
using the indirect method.
b) Compute free cash flow.
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