18 . Jim Co's worksheet for the preparation of its 2020 statement of cash flows included the following:

2020 2019

Accts. receivable P 29,000 P 23,000

Allow. for Uncollec. Accts. 1,000 800

Prepaid rent Expense 8,200 12,400

Accounts Payable 22,400 19,400

Jim Co's net income is 150,000. What amount should Jim include as net cash provided by operating activities in the statement of cash flows?

a. P 151,400 b. P 151,000 c. P 148,600 d.P 145,400

19. In a statement of cash flows, which of the following items is reported as a cash outflow from financing activities

I Payments to retire mortgage bonds

II Interest payments on mortgage notes

III Dividend payments

a. I, II and III b. I only c. II and III d. I and III only

20. The following information was taken from the 2020 financial statements of Jupiter Corporation:

Accts reciev. Jan. 1, 2020 P 20,000

Accts. receiv. Dec. 31, 2020 30,000

Sales on acct. and cash sales 500,000

Uncollectible Accounts 1,500

No accounts receivable were written off or recovered during the year. If the direct method is used in 2020 statement of cash flows,Jupiter should report cash collected from customers as :

a. P 490,000 b. P 510,000 c. P 218, 500 d. P 488,500

21. Duke Co. reported cost of goods of P 270,000 for 2020. Additional information is as follows:

Dec. 31 Jan 1

Inventory P 60,000 P45,000

Accounts Payable 26,000 39,000

If Duke uses direct method , what amount should be reported as cash paid to suppliers in its 2020 statement of cash flows?

a. P 242,000 b. P 268,000 c. P 272,000 d. P 298,000

22 - 24 The following changes occurred in selected accounts of John Corporation for the year ended Dec. 31, 2020

Increase in long-term debt P 60,000 Purchase of treasury stock 20,000

Depreciation and Amortization 200,000 Gain on Sale of Equipment 10,000

Proceeds from issu. of Common Stock 180,000 Purchase of Equipment 630,000

Proceeds from sale of Equipment 25,000 Payment of Dividends 40,000

Net income 500,000

Inc. (dec). in Working Capital Accounts :

Inventory P 275,000 Accts receivable 230,000

Accounts Payable 120,000 Taxes Paid (30,000)

Trade Notes Payable 160,000

22. Net cash flow from operating activities in 2020was

a. P 435,000 b. P 945,000 c. P 690,000 d.P 790,000

23. Net cash flows from investing activities in 2020

a. P 25,000 b. (P 60,000 ) c. P (605,000) d.P 630,000

24 Net cash flow from financing activities in 2020 was

a. P 150,000 b. P 180,000 c. P 240,000 d. P 200,000

25 - 26are based on the following information.Mayla Co, provided the following information on selected transactions during 2019:

Purchases of inventories P 1,520,000 Loans made to affliated corp. 560,000

Proceeds from issuing bonds 800,000 Dividends paid to pref. stockholders 160,000

Proceeds from issuing pref. stock 640,000 Purchase of treasury stock 240,000

Proceeds from sale of equipment 80,000 Purchase of land by issuing bonds 400,000

25. The net cash provided (used) by investing activities was

a. P (480,000) b. P (880,000) c. P( 2,000,000) d. P 80,000

26. The net cash provided (used) by financing activities was

a. P 880,000 b. P 1,040,000 c. P 1,280,000 d. P 1,440,000

27. Total operating expenses on Presidential Company's income statement for 2020 totaled P 215,000. between the beginning and end of the year, the accounts payable increased by P 7,000 , the accrued expense payable decreased by P 4,500 and prepaid expenses decreased by

P 1,500. Depreciation expense for 2020 was P 11,000. Based on this information, operating expenses adjusted to a cash basis under the direct method would be

a.P 212,500 b. P 207,000 c. P 219,000 d. P 201,000

28-29 Given the following events for Maligaya Co. , for 2020:

Issuance of Common Stock P 200,000 Proceeds from sale of plant equip.P190,000

Dividends paid to shareholders 40,000 Retirement of preferred stock 80,000

Dividends reciev. from invest. 20,000 Purchase of Building 120,000

Interest paid on Bonds Payable 15,000 Sale of treasury stock 25,000

Int. receiv. from loans granted to employees 5,000

Repayment to Maligaya of a loan by subsidiary 35,000

28. The net cash flow from investing activities for 2020 was

a. P 55,000 b. P70,000 c. P40,000 d. P130,000

29. The net cash flow from financing activities for2020 was

a. P 105,000 b. P115,000 c. P95,000 d. P 130,000

30 - 34 Flax uses the direct method to prepare its statement of cash flows. Flax's trial balances at Dec. 31, 2019are as follows

Dec. 31 Dec 31

2019 2018 2019 2018

Debits Credits________________________________

Cash P 35,000 P 32,000 Allow for Uncollec. Accnts. P1,300 P1,100

Accounts receivable 33,000 30,000 Accumulated depreciation 16,500 15,000

Inventory 31,000 47,000 Trade Accounts Payable 25,000 17,500

Prop. , Plant and Equip. 100,000 95,000 Income Taxes Payable 21,000 27,100

Unamortized bond discount 4,500 5,000 Deferred Income Tax 5,300 4,000

Cost of Goods Sold 250,000 380,000 8% Callable Bonds payable 45,000 20,000

Selling Expenses 141,500 172,300 Common Stock 50,000 40,000

Gen. & Admi. Expenses 137,000 151,000 Additional paid-in Capital 9,100 7,500

Interest Expense 4,300 2,600 Retained Earnings 44,700 64,600

Income Tax Expense 20,400 61,200 Sales 538,800 778,700

P 756,700P 976,100 P 756,700 P 976,100

====== ====== ===== =====

• Flax purchased P 5,000 in equipment during 2019.
• Flax allocated one third of its depreciation expense to selling expenses and the remainder to general and administrative expenses

What amounts should Flax report in its statement of cash flows for the year ended Dec. 31, 2019, for the following :

30. Cash collected from customers ?a. P 541,800 b. P 541,600 c. P 536,000 d. P 535,800

31.Cash paid for goods to be sold? a. P 258,500 b. P 257,500c. P 242,400 d. P 226,500

32. Cash paid for interest a. P 4,800 b. P4,300 c. P 3,800 d. P 1,700

33.Cash paid for income taxes ? a. P 25,800 b. P 20,400 c.P 19,700 d. P 15,000

34.Cash paid for selling expenses a. P 142,000 b. P 141,500 c. P 141,000 d. P 140,000