ACC 560 HW 9
drstevens
560wk9HW.docxExercise 13-4
Gutierrez Company reported net income of $194,300 for 2020. Gutierrez also reported depreciation expense of $46,800 and a loss of $5,900 on the disposal of plant assets. The comparative balance sheet shows a decrease in accounts receivable of $19,800 for the year, a $21,800 increase in accounts payable, and a $3,400 decrease in prepaid expenses. Prepare the operating activities section of the statement of cash flows for 2020. Use the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)
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GUTIERREZ COMPANY Partial Statement of Cash Flows choose the accounting period
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select an opening section name
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select an item
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$enter a dollar amount
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Adjustments to reconcile net income to |
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select a subsection name
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select an item
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$enter a dollar amount
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select an item
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enter a dollar amount
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select an item
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enter a dollar amount
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select an item
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enter a dollar amount
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select an item
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enter a dollar amount
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enter a subtotal of the adjustments
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select a closing section name
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$enter a total amount for the section
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Exercise 13-6 (Video)
The following information is available for Stamos Corporation for the year ended December 31, 2020.
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Beginning cash balance |
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$50,000 |
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Accounts payable decrease |
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3,900 |
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Depreciation expense |
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174,000 |
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Accounts receivable increase |
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7,400 |
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Inventory increase |
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10,000 |
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Net income |
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256,000 |
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Cash received for sale of land at book value |
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31,000 |
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Cash dividends paid |
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12,000 |
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Income taxes payable increase |
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4,800 |
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Cash used to purchase building |
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303,000 |
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Cash used to purchase treasury stock |
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28,000 |
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Cash received from issuing bonds |
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181,000 |
Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)
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STAMOS CORPORATION Statement of Cash Flows—Indirect Method
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$
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Adjustments to Reconcile net income to |
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$
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$
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Exercise 13-7
The following three accounts appear in the general ledger of Herrick Corp. during 2020.
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Equipment |
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Date |
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Debit |
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Credit |
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Balance |
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Jan. 1 |
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Balance |
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161,200 |
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July 31 |
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Purchase of equipment |
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71,200 |
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232,400 |
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Sept. 2 |
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Cost of equipment constructed |
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53,300 |
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285,700 |
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Nov. 10 |
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Cost of equipment sold |
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49,000 |
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236,700 |
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Accumulated Depreciation—Equipment |
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Date |
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Debit |
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Credit |
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Balance |
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Jan. 1 |
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Balance |
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72,000 |
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Nov. 10 |
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Accumulated depreciation on equipment sold |
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29,300 |
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42,700 |
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Dec. 31 |
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Depreciation for year |
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24,800 |
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67,500 |
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Retained Earnings |
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Date |
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Debit |
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Credit |
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Balance |
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Jan. 1 |
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Balance |
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105,700 |
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Aug. 23 |
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Dividends (cash) |
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17,400 |
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88,300 |
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Dec. 31 |
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Net income |
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66,800 |
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155,100 |
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 plant assets was $5,200. (Hint: Cost of equipment constructed is reported in the investing activities section as a decrease in cash of $53,300.) (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)
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HERRICK CORP Partial Statement of Cash Flows choose the accounting period
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select an opening name for section one
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select an item
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$enter a dollar amount
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Adjustments to reconcile net income to |
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select a subsection name
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select an item
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$enter a dollar amount
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select an item
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enter a dollar amount
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enter a subtotal of the adjustments
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select a closing name for section one
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enter a total amount for section one
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select an opening name for section two
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select an item
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enter a dollar amount
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select an item
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enter a dollar amount
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select an item
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enter a dollar amount
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select a closing name for section two
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enter a total amount for section two
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select an opening name for section three
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select an item
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enter a dollar amount
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Problem 13-1A
You are provided with the following information regarding events that occurred at Moore Corporation during 2020 or changes in account balances as of December 31, 2020. Moore prepares its statement of cash flows using the indirect approach. Complete the first column of the table, indicating whether each item affects the operating activities section (O) (that is, the item would be listed among the adjustments to net income to determine net cash provided by operating activities under the indirect approach), investing activities section (I), financing activities section (F), or is a noncash (NC) transaction reported in a separate schedule. For those items classified as operating activities (O), indicate whether the item is added (A) or subtracted (S) from net income to determine net cash provided by operating activities.
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Transaction |
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Statement of Cash Flow Section Affected |
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If Operating, did it increase/decrease Reported cash from Operating activities? |
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(a) |
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Depreciation expense was $80,000. |
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select a kind of activity
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select an option
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(b) |
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Interest Payable account increased $5,000. |
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select a kind of activity
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select an option
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(c) |
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Received $26,000 from sale of plant assets. |
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select a kind of activity
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select an option
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(d) |
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Acquired land by issuing common stock to seller. |
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select a kind of activity
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select an option
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(e) |
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Paid $17,000 cash dividend to preferred stockholders. |
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select a kind of activity
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select an option
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(f) |
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Paid $4,000 cash dividend to common stockholders. |
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select a kind of activity
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select an option
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(g) |
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Accounts Receivable account decreased $10,000. |
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select a kind of activity
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select an option
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(h) |
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Inventory increased $2,000. |
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select a kind of activity
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select an option
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(i) |
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Received $100,000 from issuing bonds payable. |
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select a kind of activity
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select an option
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(j) |
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Acquired equipment for $16,000 cash. |
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select a kind of activity
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select an option
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