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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

Sept. 2
283,000

Cost of equipment constructed

53,000