1.) Thorin's accumulated depreciation on mining equipment increased by P 3 million, while P 500,000 of patent amortization was recognized between balance sheet dates.There were no purchases or sales of depreciable assets during the year.In addition, the income statement showed a gain of P 25 m from the sale of land that cost P 325 mwhich was sold for P 350 m.Net income for the current year amounted to P 200 million.Based on the given information, how much was the net cash inflows from operating activities?

Select one:

a. P 533 million

b. P 233 million

c. P 583 million

d. P 178.5 million

2.) Bree Corporation's comparative balance sheet for current assets and liabilities was as follows:

12/31/201612/31/2017

Accounts receivable28 million35 million

Inventory8580

Accounts payable132117

Adjust net income of P 150 million for changes in operating assets and liabilites.Given the preceding information, how much is the net cash inflows from operating activities?

Select one:

a.

P 163 million

b.

P 147 million

c.

P 153 million

d.

P 133 million

3.) The Prancing Pony reported the following data:

Net incomeP 450 million

Depreciation expense5

Loss on sale of equipment9

Increase in prepaid expenses25

Decrease in accrued expenses12

Increase in wages payable10

How much is the net cash flows from operating activities?(2 points)

Select one:

a. P 417 million

b. P 437 million

c. P 409 million

d. P 491 million

4.)The Lord of the Underhill purchased land for P 900 million.a few months later, the company sold another piece of land with a book value of P 500 m for P 800 million.How will these transactions be shown on the statement of cash flows? (2 points)

Select one:

a. An addition tonet income for the gain amounting to P 300 m, and a net cash outflow from investing activity ofP 200 m.

b. A deduction from net income for the gain amounting to P 300 m, and a net cash outflow from investing activity ofP 200 m.

c. An addition tonet income for the gain amounting to P 300 m, and a net cash outflow from investing activity ofP 400 m.

d. A deduction from net income for the gain amounting to P 300 m, and a net cash outflow frominvesting activity ofP 400 m.

5.) The statementof cash flows helps the users of the financial statement evaluate the companies abilities, except:

Select one:

a. To maintain and expand its operating capacity.

b. To generate cash inflows from operations.

c. To determine the financial health and strength of the company.

d.To determine whether the company can pay dividends.

6.) Non cash transactions are shown on the statement of cash flows and in the notes to the financial statements, for emphasis.

Select one:

True

False

II. For each of the following items, indicate of it is a (1) cash inflow from operating activity, (2) cash outflow from operating activity, (3)cash inflow from investing activity, (4) cash outflow from investing activity, (5) cash inflow from financing activity, (6) cash outflow from financing activity, (7) non cash transaction, or a (8) non cash item (an adjustment to net income.)

1.) Net income

2.Interest income from long term securities

3.Issued shares of common stock in excess of par value

4.Obtained land by issuing a real estate mortgage note payable

5.Purchased treasury shares or shares of the company's own shares of stock

6.Sold fully depreciated equipment for scrap

7.Purchased a patent from an inventor

8.Patent amortization

9.Reduction in account payable

10.Increase in wages payable

11.Increase in interest payable

12.Increase in inventory

13.Decrease in accounts receivable

14.Increase in income taxes payable

15.Purchase of copyright from an author