# Strayer Univ ACC 557 Assignment Exercises

Strayer Univ ACC 557 Assignment Exercises in \$15 only

Directions: Answer the following questions on a separate Microsoft Word or Excel document. Explain how you reached the answer or show your work if a mathematical calculation is needed, or both. Submit your assignment using the assignment link in Blackboard.

Exercises

E13-3. Cushenberry Corporation C had the following transactions.

• Sold land (cost \$12,000) for \$15,000.
• Issued common stock at par for \$20,000.
• Recorded depreciation on buildings for \$17,000.
• Paid salaries of \$9,000.
• Issued 1,000 shares of \$1 par value common stock for equipment worth \$8,000.
• Sold equipment (cost \$10,000, accumulated depreciation \$7,000) for \$1,200.

Instructions

For each transaction above, (a) prepare the journal entry, and (b) indicate how it would affect the statement of cash ?ows using the indirect method.

E13-4. Gutierrez Company reported net income of \$225,000 for 2015. 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 ?ows for 2015. Use the indirect method.

Problems

P13-3A. The income statement of Whitlock Company is presented here.

Whitlock Company

Income Statement

For the Year Ended November 30th, 2015

Sales Revenue \$7,700,000

Cost of Goods Sold

Beginning Inventory \$1,900,000

Purchases 4,400,000

Goods available for sale 6,300,000

Ending Inventory 1,400,000

Total Cost of Goods sold 4,900,000

Gross profit 2,800,000

Operating expenses 1,150,000

Net Income \$1,650,000

• Accounts receivable increased \$200,000 during the year, and inventory decreased \$500,000.
• Prepaid expenses increased \$150,000 during the year.
• Accounts payable to suppliers of merchandise decreased \$340,000 during the year.
• Accrued expenses payable decreased \$100,000 during the year.
• Operating expenses include depreciation expense of \$70,000.

Instructions

Prepare the operating activities section of the statement of cash ?ows for the year ended November 30, 2015, for Whitlock Company, using the indirect method.

P13-7A. Presented below are the ?nancial statements of Nosker Company.

NOSKER COMPANY

Comparative Balance Sheets

December 31

Assets 2015 2014

Cash \$ 38,000 \$ 20,000

Accounts Receivable 30,000 14,000

Inventory 27,000 33,000

Equipment 60,000 78,000

Accumulated depreciation- Equipment (29,000) (24,000)

Total \$126,000 \$108,000

Liabilities and Stockholders’ Equity

Accounts Payable \$ 24,000 \$ 15,000

Income Taxes Payable 7,000 8,000

Bonds Payable 27,000 33,000

Common Stock 18,000 14,000

Retained Earnings 50,000 38,000

Total \$126,000 \$108,000

NOSKER COMPANY

Income Statement

For the Year Ended December 31, 2015

Sales Revenue \$242,000

Cost of Goods Sold 175,000

Gross profit 67,000

Operating expenses 24,000

Income from operations 43,000

Interest expense 3,000

Income Before income taxes 40,000

Income tax expense 8,000

Net Income \$ 32,000

• Dividends declared and paid were \$20,000.
• During the year equipment was sold for \$8,500 cash. This equipment cost \$18,000 originally and had a book value of \$8,500 at the time of sale.
• All depreciation expense, \$14,500, is in the operating expenses.
• All sales and purchases are on account.

Instructions

• Prepare a statement of cash ?ows using the indirect method.
• Compute free cash ?ow.

Price of Answer: Just US\$15 only

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