6.Durrand Corporation's accumulated depreciation increased by $11,215, while patents decreased by $3,022 between consecutive balance sheet dates. There were no purchases or sales of depreciable or intangible assets during the year. In addition, the income statement showed a gain of $3,468 from sale of land. The company earned a net income of $45,515. Assuming there were no changes in noncash current assets and liabilities, determine the net cash flows from operating activities under the indirect method.

Ans:[$]

7.Fortune Corporations comparative balance sheet showed noncash current assets and liabilities as follows:

	Dec. 31, Year 2	Dec. 31, Year 1
Accounts receivable	$7,121	$5,169
Merchandise inventory	9,141	14,337
Accounts payable	3,958	6,494
Dividends payable	4,433	3,229

Adjust Year 2 net income of $42,724 for changes in current operating assets and liabilities to arrive at net cash flows from operating activities using the indirect method. Ans:[$]

8.Lamar Corporation purchased land for $155,000. Later in the year, the company sold land with a book value of $181,000 for $203,000. Show how the effects of these transactions are reported on the statement of cash flows using the indirect method.

Transaction	Amount	Increase or Decrease	Statement of Cash Flows Section
Gain on sale of land	$fill in the blank 1	IncreaseDecrease	Operating/Investing/Financing
Cash received for sale of land	$fill in the blank 4	IncreaseDecrease	Operating/Investing/Financing
Cash paid for purchase of land	$fill in the blank 7	IncreaseDecrease	Operating/Investing/Financing

9.Cost of merchandise sold reported on the income statement was $168,300. The accounts payable balance increased $6,010, and the inventory balance increased by $6,690 over the year. Determine the amount of cash paid for merchandise.

Ans:[$]

10.

1. Question Content Area

   Cash and accounts receivable for Adams Company are as follows:

   	Current Year		Prior Year
   Cash	$41,000		$32,800
   Accounts receivable (net)	44,574		78,200

   What are the amounts and percentages of increase or decrease that would be shown with horizontal analysis?

   Account	Dollar Change		Percent Change
   Cash	$fill in the blank 1		fill in the blank 2 %		increase/decrease
   Accounts Receivable	$fill in the blank 4		fill in the blank 5 %		increase/decrease