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# ACC 557 Week 9 HomeWork 5

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ACC 557 Week 9 HomeWork 5 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. 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 For each transaction above, (a) prepare the journal entry, and (b) indicate how it would affect the statement of cash ï¬‚ows 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 ï¬‚ows for 2015. Use the indirect method. Problems P13-3A. The income statement of Whitlock Company is presented here. 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 ï¬‚ows for the year ended November 30, 2015, for Whitlock Company, using the indirect method. P13-7A. Presented below are the ï¬nancial statements of Nosker Company. 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 ï¬‚ows using the indirect method. Compute free cash ï¬‚ow.

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