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ACC 421 Week 3 Assignment Problems - Ex. 5-15, 5-17 and 5-18

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Exercise 5-15;Presented below is a condensed version of the comparative balance sheets for Sondergaard Corporation for the last two years at December 31.;2012 2011;Cash $279,774 $138,996;Accounts receivable 320,760 329,670;Investments 92,664 131,868;Equipment 531,036 427,680;Less: Accumulated depreciation?equipment (188,892) (158,598);Current liabilities 238,788 269,082;Capital stock 285,120 285,120;Retained earnings 511,434 315,414;Additional information;Investments were sold at a loss (not extraordinary) of $12,474, no equipment was sold, cash dividends paid were $89,100, and net income was $285,120.;(a) Prepare a statement of cash flows for 2012 for Sondergaard Corporation. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).);(b) Determine Sondergaard Corporation?s free cash flow.;Free cash flow $;Exercise 5-17;Chekov Corporation?s balance sheet at the end of 2011 included the following items.;Current assets $236,606 Current liabilities $151,606;Land 32,025 Bonds payable 101,606;Buildings 121,606 Common stock 182,025;Equipment 92,025 Retained earnings 46,025;Accum. depr.?buildings (31,606) Total 481,262;Accum. depr.?equipment (11,000);Patents 41,606;Total $481,262;The following information is available for 2012.;1. Net income was $55,181.;2. Equipment (cost $21,606 and accumulated depreciation $9,606) was sold for $10,606.;3. Depreciation expense was $5,606 on the building and $10,606 on equipment.;4. Patent amortization was $2,500.;5. Current assets other than cash increased by $25,000. Current liabilities increased by $14,606.;6. An addition to the building was completed at a cost of $28,606.;7. A long-term investment in stock was purchased for $16,000.;8. Bonds payable of $52,025 were issued.;9. Cash dividends of $25,000 were declared and paid.;10. Treasury stock was purchased at a cost of $11,000.;(a)Prepare a statement of cash flows for 2012. (Show only totals for current assets and current liabilities.) (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).);Exercise 5-18;The comparative balance sheets of Menachem Corporation at the beginning and end of the year 2012 appear below.;Net income of $35,995 was reported, and dividends of $25,092 were paid in 2012. New equipment was purchased and none was sold.;(a)Prepare a statement of cash flows for the year 2012. (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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