ACC 560 Week 9 Homework Chapter 13 (E13-4, E13-6, E13-7 and P13-1A)\t\u00a0Chapter 13: Statement of Cash Flows\u00a0\tACC 560 Week 9 Chapter 13 Exercises 4, 6, and 7; Problem 1\tE13-4\t\u00a0Gutierrez 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.\tInstructions \tPrepare the operating activities section of the statement of cash flows for 2017. Use the indirect method.\t\u00a0\tE13-6\t\u00a0the three accounts shown below appear in the general ledger of Herrick Corp. during 2017.\tEquipment\tDate”\ufffd”\ufffd”\ufffd”\ufffd”\ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd\u00a0\u00a0\u00a0\u00a0 Debit \ufffd \ufffd\u00a0\u00a0\u00a0 Credit \ufffd \ufffd\u00a0\u00a0 Balance\tJan. \u00a0\u00a0\u00a0\u00a0 1 \ufffd\u00a0\u00a0\u00a0 Balance \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd\u00a0\u00a0\u00a0\u00a0 160,000\tJuly \u00a0\u00a0\u00a0\u00a0 31 \ufffd\u00a0 Purchase of equipment \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd\u00a0\u00a0\u00a0\u00a0 70,000 \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd\u00a0\u00a0 230,000\tSept. \u00a0\u00a0 2 \ufffd\u00a0\u00a0\u00a0 Cost of equipment constructed \ufffd \ufffd \ufffd \ufffd\u00a0\u00a0 53,000 \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd\u00a0\u00a0 283,000\tNov. \u00a0\u00a0 10 \ufffd\u00a0 Cost of equipment sold \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd\u00a0\u00a0\u00a0 49,000 \ufffd \ufffd \ufffd \ufffd\u00a0\u00a0\u00a0 234,000\tAccumulated Depreciation”\ufffdEquipment\tDate”\ufffd”\ufffd”\ufffd”\ufffd”\ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd\u00a0 Debit \u00a0 Credit \ufffd \ufffd\u00a0\u00a0\u00a0 Balance\tJan. \u00a0\u00a0\u00a0\u00a0 1 \ufffd\u00a0\u00a0\u00a0 Balance \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd\u00a0\u00a0\u00a0\u00a0 71,000\tNov. \u00a0\u00a0 10 \ufffd\u00a0 Accumulated depreciation on equipment sold \ufffd \ufffd\u00a0 30,000 \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd 41,000\tDec. \u00a0\u00a0\u00a0 31 \ufffd\u00a0 Depreciation for year \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd\u00a0\u00a0\u00a0\u00a0 28,000 \ufffd \ufffd \ufffd \ufffd\u00a0\u00a0\u00a0 69,000\tRetained Earnings\tDate”\ufffd”\ufffd”\ufffd”\ufffd”\ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd\u00a0 Debit \u00a0 Credit \ufffd \ufffd\u00a0\u00a0 Balance\tJan. \u00a0\u00a0\u00a0\u00a0 1 \ufffd\u00a0\u00a0\u00a0 Balance \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd\u00a0\u00a0\u00a0\u00a0 105,000\tAug. \u00a0\u00a0\u00a0 23 \ufffd\u00a0 Dividends (cash) \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd\u00a0\u00a0\u00a0\u00a0 14,000 \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd 91,000\tDec. \u00a0\u00a0\u00a0 31 \ufffd\u00a0 Net income \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd\u00a0\u00a0\u00a0\u00a0 77,000 \ufffd \ufffd \ufffd \ufffd\u00a0\u00a0\u00a0 168,000\t\u00a0\tInstructions\t\u00a0\tFrom 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.\t\u00a0\tE13-7\t\u00a0Rojas Corporation’s comparative balance sheets are presented below.\tROJAS CORPORATION\tComparative Balance Sheets\tDecember 31\t \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd\u00a0\u00a0 2017 \ufffd \ufffd\u00a0\u00a0\u00a0\u00a0 2016\tCash \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd\u00a0\u00a0\u00a0 $14,300″\ufffd \ufffd\u00a0\u00a0 $10,700″\ufffd\tAccounts receivable \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd\u00a0\u00a0\u00a0\u00a0 21,200″\ufffd \ufffd\u00a0\u00a0\u00a0\u00a0 23,400″\ufffd\tLand \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd\u00a0\u00a0\u00a0 20,000″\ufffd \ufffd\u00a0\u00a0\u00a0\u00a0 26,000″\ufffd\tBuildings \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd\u00a0 70,000″\ufffd \ufffd\u00a0\u00a0\u00a0\u00a0 70,000″\ufffd\tAccumulated depreciation”\ufffdbuildings \ufffd \ufffd\u00a0 “\ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd (15,000) \ufffd\u00a0\u00a0\u00a0\u00a0 (10,000)\t \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd\u00a0\u00a0 ________ \ufffd\u00a0\u00a0 _________\tTotal \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd\u00a0\u00a0\u00a0 $110,500″\ufffd \ufffd\u00a0 $120,100″\ufffd\tAccounts payable \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd\u00a0\u00a0\u00a0 $12,370″\ufffd \ufffd\u00a0\u00a0 $31,100″\ufffd\tCommon stock \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd\u00a0\u00a0\u00a0\u00a0 75,000″\ufffd \ufffd\u00a0\u00a0\u00a0\u00a0 69,000″\ufffd\tRetained earnings \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd\u00a0\u00a0\u00a0 23,130″\ufffd \ufffd\u00a0\u00a0\u00a0\u00a0 20,000″\ufffd\t \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd\u00a0\u00a0 _________ \ufffd _________\tTotal \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd\u00a0\u00a0\u00a0 $110,500″\ufffd \ufffd\u00a0 $120,100″\ufffd\t\u00a0\tInstructions\t\u00a0\ta. Prepare a statement of cash flows for 2017 using the indirect method.\tb. Compute free cash flow.\t\u00a0\tP13-1A\t\u00a0You are provided with the following transactions that took place during a recent fiscal year.\t \ufffd \ufffd\u00a0 \ufffd \ufffd \ufffd \ufffd\u00a0\u00a0\u00a0\t(a) \ufffd\u00a0 Recorded depreciation expense on the plant assets. \ufffd \ufffd \ufffd\t(b) \ufffd\u00a0 Recorded and paid interest expense. \ufffd \ufffd \ufffd \ufffd \ufffd\u00a0\t(c) \ufffd\u00a0 Recorded cash proceeds from a disposal of plant assets. \ufffd\u00a0\u00a0\t(d) \ufffd\u00a0 Acquired land by issuing common stock. \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd\t(e) \ufffd\u00a0 Paid a cash dividend to preferred stockholders. \ufffd \ufffd \ufffd \ufffd\u00a0\t(f) \ufffd\u00a0 Paid a cash dividend to common stockholders. \ufffd \ufffd \ufffd \ufffd\u00a0\t(g) \ufffd\u00a0 Recorded cash sales. \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd\t(h) \ufffd\u00a0 Recorded sales on account. \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd\u00a0\u00a0\u00a0\u00a0\t(i) \ufffd\u00a0\u00a0 Purchased inventory for cash. \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd\u00a0\u00a0\t(j) \ufffd\u00a0\u00a0 Purchased inventory on account. \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd\u00a0\t\u00a0\tInstructions\t\u00a0\tComplete 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 approach.<\/p>\n","protected":false},"excerpt":{"rendered":"
ACC 560 Week 9 Homework Chapter 13 (E13-4, E13-6, E13-7 and P13-1A) \u00a0Chapter 13: Statement of Cash Flows\u00a0 ACC 560 Week 9 Chapter 13 Exercises 4, 6, and 7; Problem 1 E13-4 \u00a0Gutierrez Company reported net income of $225,000 for Read More …<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-200341","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/200341","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/comments?post=200341"}],"version-history":[{"count":0,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/200341\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/media?parent=200341"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/categories?post=200341"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/tags?post=200341"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}