ACC 560 help A Guide to career/uophelp.com ACC 560 help A Guide to career/uophelp.com | Page 64

Chapter 13: Statement of Cash Flows
ACC 560 Week 9 Chapter 13 Exercises 4, 6, and 7; Problem 1
E13-4
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.
Instructions
Prepare the operating activities section of the statement of cash flows for
2017. Use the indirect method.
E13-6
the three accounts shown below appear in the general ledger of Herrick
Corp. during 2017.
Equipment
Date
Credit
Debit
Balance
Jan.
1
160,000 Balance
July
31
230,000 Purchase of equipment
70,000