6) Net cash flow from operating activities for 2020 for Spencer Corporation was P300,000. The following

items are reported on the financial statements for 2020:

Cash dividends paid on ordinary shares 20,000

Depreciation and amortization 12,000

Increase in accounts receivables 24,000

Based on the information above, Spencers net income for 2020 was

A. 312,000 B. 296,000 C. 264,000 D. 256,000

7) Soulstealer Limited had a net profit after tax of P850,000 for the financial year. Included in this profit was:

Depreciation expense of P120,000.

Gain on sale of investments of P28,000.

Also, Accounts Receivable increased by P39,000 and Inventories decreased by P12,000. The cash flow

from operating activities during the year was:

A. 969,000 B. 915,000 C. 785,000 D. 731,000