STAYER ACC 560 Week 9 Homework Chapter 13 .pdf
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STAYER ACC 560 Week 9 Homework Chapter 13 (E13-4, E13-6,
E13-7 and P13-1A) NEW
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Chapter 13: Statement of Cash Flows
ACC 560 Week 9 Chapter 13 Exercises 4, 6, and 7; Problem 1
Gutierrez Company reported net income of $225,000 for 2017.
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.
Prepare the operating activities section of the statement of cash
flows for 2017. Use the indirect method.
the three accounts shown below appear in the general ledger
of Herrick Corp. during 2017.
Purchase of equipment
Cost of equipment constructed
Cost of equipment sold
Accumulated depreciation on equipment sold
Depreciation for year
From the postings in the accounts, indicate how the
information is reported on a statement of cash flows using the
indirect method. The loss on disposal of equipment was $7,000.
(Hint: Cost of equipment constructed is reported in the
investing activities section as a decrease in cash of $53,000.
Rojas Corporation's comparative balance sheets are presented
Comparative Balance Sheets
a. Prepare a statement of cash flows for 2017 using the indirect
b. Compute free cash flow.
You are provided with the following transactions that took
place during a recent fiscal year.
Recorded depreciation expense on the plant assets.
Recorded and paid interest expense.
Recorded cash proceeds from a disposal of plant assets.
Acquired land by issuing common stock.
Paid a cash dividend to preferred stockholders.
Paid a cash dividend to common stockholders.
Recorded cash sales.
Recorded sales on account.
Purchased inventory for cash.
Purchased inventory on account.
Complete the table indicating whether each item (1) affects
operating (O) activities, investing (I) activities, financing (F)
activities, or is a noncash (NC) transaction reported in a
separate schedule, and (2) represents a cash inflow or cash
outflow or has no cash flow effect. Assume use of the indirect