Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

ADM B003 Managerial Accounting and Control 1 Cash Flow Statement Analysis Activity ( 100 points) 1. Given the following statement of Financial Position and Statement

image text in transcribedimage text in transcribedimage text in transcribed

image text in transcribedimage text in transcribed

ADM B003 Managerial Accounting and Control 1 Cash Flow Statement Analysis Activity ( 100 points) 1. Given the following statement of Financial Position and Statement of Financial Performance, Prepare the Statement of Cash Flows using the Indirect Method. (30 points) 2. Further, Prepare the Common Size Statement of Cash Flows. (10 points) 3. Answer the following Questions: a) Is the company generating sufficient positive cash flows from its ongoing operation? (5 points) b) Will the company be able to meet its financial obligations to creditors? (5 points) c) What expansion activities took lace and how were theses financed (if any)? (5points) d) Is it possible to report a net Income but with a negative decrease in cash? Explain why? (5 points) 4. Write a 4 to 5 sentences of your analysis of the transactions of the company as you can see in the statement of cash flows. (note: use e three activities in your analysis) (30 points) 5. 10 points for submitting on time. STATEMENT OF FINANCIAL POSITION (In Philippine Peso) \begin{tabular}{|l|r|r|} \hline LIABILITIES & \multicolumn{1}{|c|}{2020} & 2019 \\ Current Liabilities & & \\ Bank loans & 830,000,000 & 65,000,000 \\ Current portion of long-term debt & 241,690,058 & 160,440,058 \\ Accounts payable and accrued expenses & 5,954,411,302 & 6,785,772,198 \\ Lease liabilities & 2,125,633,197 & 2,006,019,727 \\ Current portion of contract liabilities & 510,441,833 & 418,715,881 \\ Income tax payable & 266,514 & 218,851,309 \\ Other current liabilities & 4,201,875,385 & 4,051,960,551 \\ Total Current Liabilities & 13,864,318,289 & 13,706,759,724 \\ & & \\ Noncurrent Liabilities & & \\ Long-term debt - net of current portion & 1,091,725,146 & 333,415,205 \\ Lease liabilities - net of current portion & 6,487,085,252 & 6,753,525,570 \\ Deposits payable & 361,995,615 & 313,328,714 \\ Contract liabilities - net of current portion & 141,915,647 & 191,702,318 \\ Net retirement obligations & 442,099,746 & 331,343,566 \\ Cumulative redeemable preferred shares & 6,000,000 & 6,000,000 \\ \hline Total Noncurrent Liabilities & 8,530,821,406 & 7,929,315,373 \\ Total Liabilities & 22,395,139,695 & 21,636,075,097 \\ \hline \end{tabular} STATEMENT OF FINANCIAL OPERATION ADM B003 Managerial Accounting and Control 1 Cash Flow Statement Analysis Activity ( 100 points) 1. Given the following statement of Financial Position and Statement of Financial Performance, Prepare the Statement of Cash Flows using the Indirect Method. (30 points) 2. Further, Prepare the Common Size Statement of Cash Flows. (10 points) 3. Answer the following Questions: a) Is the company generating sufficient positive cash flows from its ongoing operation? (5 points) b) Will the company be able to meet its financial obligations to creditors? (5 points) c) What expansion activities took lace and how were theses financed (if any)? (5points) d) Is it possible to report a net Income but with a negative decrease in cash? Explain why? (5 points) 4. Write a 4 to 5 sentences of your analysis of the transactions of the company as you can see in the statement of cash flows. (note: use e three activities in your analysis) (30 points) 5. 10 points for submitting on time. STATEMENT OF FINANCIAL POSITION (In Philippine Peso) \begin{tabular}{|l|r|r|} \hline LIABILITIES & \multicolumn{1}{|c|}{2020} & 2019 \\ Current Liabilities & & \\ Bank loans & 830,000,000 & 65,000,000 \\ Current portion of long-term debt & 241,690,058 & 160,440,058 \\ Accounts payable and accrued expenses & 5,954,411,302 & 6,785,772,198 \\ Lease liabilities & 2,125,633,197 & 2,006,019,727 \\ Current portion of contract liabilities & 510,441,833 & 418,715,881 \\ Income tax payable & 266,514 & 218,851,309 \\ Other current liabilities & 4,201,875,385 & 4,051,960,551 \\ Total Current Liabilities & 13,864,318,289 & 13,706,759,724 \\ & & \\ Noncurrent Liabilities & & \\ Long-term debt - net of current portion & 1,091,725,146 & 333,415,205 \\ Lease liabilities - net of current portion & 6,487,085,252 & 6,753,525,570 \\ Deposits payable & 361,995,615 & 313,328,714 \\ Contract liabilities - net of current portion & 141,915,647 & 191,702,318 \\ Net retirement obligations & 442,099,746 & 331,343,566 \\ Cumulative redeemable preferred shares & 6,000,000 & 6,000,000 \\ \hline Total Noncurrent Liabilities & 8,530,821,406 & 7,929,315,373 \\ Total Liabilities & 22,395,139,695 & 21,636,075,097 \\ \hline \end{tabular} STATEMENT OF FINANCIAL OPERATION

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Corporate Finance

Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe

6th International Edition

0071229035, 978-0071229036

More Books

Students also viewed these Finance questions

Question

write about your research methods.

Answered: 1 week ago