Activity No. 7 - Statement of Cash Flows

A. Identify the correct classification of the following as as either: Operating Activities, Investing Activities and Financing Activities. If cannot be classified accordingly, write "Not Applicable"

		Classification
1	Additions to Property, Plant and Equipment
2	Amortization
3	Cash and Cash Equivalents at the beginning of the year
4	Decrease (Increase) in Accounts Receivable
5	Decrease (Increase) in Inventories
6	Depreciation
7	Increase (Decrease) in Accounts Payable
8	Increase (Decrease) in Accrued Wages and Taxes
9	Increase (Decrease) in Bonds Outstanding
10	Increase(Decrease) Notes Payab;e
11	Net Income
12	Payment of Dividends to Shareholders
13	Proceeds from sale of Land
14	Sale of Merchnadise on Account
15	Writing-off of Doubtful Accounts

B. Classify each of the following items as: Inflow or Outflow. If neither, indicate Not Applicable.

	Particulars	Amount	Classification
1	Cash	+600
2	Accounts Payable	-1,200
3	Notes Payable	+800
4	Long-term Debt	-2,500
5	Inventory	+400
6	Building	+600
7	Accounts Receivable	-900
8	Net Profits	+700
9	Depreciation	+200
10	Repurchase of shares of stock	+500
11	Cash Dividends	+300
12	Sale of Stock	+1,300
13	Transportation Equipment	-500
14	Treasury Stock	-300
15	Ordinary Shares	+1,500

Activity No. 12 Master Budget Computation Furniture Manufacturing Company - School Desk Division Scholastic Furniture Inc. Manufactures a variety of desks, chairs, tables, and shelf units that are sold to public school systems throughout the Philippines. The controller of the company's Desk Division is currently preparing a budget for the thrid quarter of the year. The following forecast has been made by the division's sales manager. Sales Budget - Sales Price = P600/set July August September October P54,000 P60,000 P75,000 P90,000 Based on the information below, prepare the company's third quarter budget of the following: A. Sales B. Production. . Desired ending inventory (finished sets) is equal to 20% of next month's budgeted sales C. Raw Material Purchases . 10 board feet per set . Desired ending inventory (board feet) = 10% of next month's use of board feet . Cost of raw material purchases = P6.00/board foot D. Direct Labor Budget . Direct labor hours per set = 1.5 . Direct labor cost per hour - P210.00Activity No. 13: Budgeting Callgate Company has forecast credit sales for the fourth quarter of the year: September (actual) P 100,000 Fourth Quarter: October 80,000 November 70,000 December 120,000 Based on the past experience, 20% of sales are collected in the month of sales, 70% in the following month and 10% are never collected. Prepare a schedule of cash receipts for the company covering the last quarter of the year