ACC 560 MART Great Stories /acc560mart.com ACC 560 MART Great Stories /acc560mart.com | Page 56

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
70,000 Purchase of equipment
230,000
Sept. 2
53,000 Cost of equipment constructed
283,000
Nov. 10
49,000 Cost of equipment sold
234,000
Accumulated Depreciation—Equipment