ALL AMOUNT IN PHILIPPINE PESO
Question 1;7
Oakwood Company provided the following data for the year:
Cash balance, beginning of the year 1,300,000
Cash flow from financing activities 1,000,000
Cash flow from operating activities 400,000
Cash flow from investing activities (1,500,000)
Total shareholders' equity, beginning of the year 2,000,000
What is the cash balance at the end of the year?
a. 1,600,000
b.1,700,000
c. 1,400,000
d. 1,200,000
Question 1;8
Sun Company provided the following data for the preparation of the statement of cash flows for the current year:
Increase in accounts receivable 300,000
Decrease in income tax payable 170,000
Depreciation 1,000,000
Net income 250,000
Gain on sale of equipment 440,000
Loss on sale of building 210,000
Using the indirect method, what should be reported as net cash flow from operating activities?
a. 780,000
b. 880,000
c. 700,000
d. 550,000
Question 1;9
Alpha Company had the following activities during the year:
?Acquired 2,000 shares of Maybel Corporation for P260,000.
?Sold an investment in Rate Motors for P350,000 when the carrying amount was P330,000.
?Acquired a P500,000, 4-year certificate of deposit from a bank.
?During the year, interest of P37,500 was paid to Alpha.
?Collected dividends of P12,000 on share investment.
What is the net cash used in investing activities?
a. 398,000
b. 410,000
c. 360,500
d. 372,500
Question 1;10
King Company provided the following information for the current year:
Dividends paid 3,000,000
Proceeds from issuance of shares 2,500,000
Borrowings under a line of credit 2,000,000
Proceeds from issuance of convertible bonds 1,000,000
Proceeds from sale of building 1,500,000
What is the net cash flows provided by financing activities?
a. 2,500,000
b. 5,500,000
c. 500,000
d. 1,500,000
Question 1;11
The following prot or loss information is available for Catherine Company for the year ended December 31, 2020: Sales 2,400,000 Cost of goods sold 1,800,000 Selling expenses 280,000 Administrative expenses 60,000 Interest expense 20,000 Gain on sale of equipment 10,000 Income tax expense 75,000 The current assets and liabilities at the end of 2020 and 2019 are as follows: 1213112020 W Cash 369,000 230,000 Accounts receivable 180,000 140,000 Inventories 380,000 350,000 Accounts payable 290,000 230,000 Additional information: 'I. Depreciation of P110,000 is included. P80,000 in selling expenses and P30,000 in administrative expenses. 2. During the year, equipment was sold for P100,000 cash. This equipment cost P150,000 and had a carrying value of P90,000. 3. New equipment was purchased for P70,000 cash. 4. P120,000 dividends were declared and paid. 5. The company purchased 300 treasury shares for cash of P36.000. Requirement: Prepare the Statement of Cash Flows using the indirect method. Seawall Company provided the following data for the preparation of cash flows for the current year: Dividends declared and paid 800,000 Cash flow from investing activities Cash flow from financing activities (2,500,000) (800,000) December 31 January 1 Cash 2, 100,000 1,200,000 Other assets 21,000,000 22,700,000 Liabilities 10,500,000 11,700,000 Share capital 2,000,000 2,000,000 Retained earnings 10,600,000 10,200,000 What amount should be reported as cash flow from operating activities? 5,400,000 4,200,000 O 2,400,000 4,500,000Lax Company provided the following information during the current year: Dividend received 500,000 Dividend paid 1,000,000 Cash received from customers 9,000,000 Proceeds from issuing share capital 1,500,000 Interest received 200,000 Proceeds from sale of long term investments 2,000,000 Cash paid to suppliers and employees 6,000,000 Interest paid on long term debt 400,000 Income taxes paid 300,000 Cash balance, January 1 1,800,000 What is the net cash provided by operating activities for the current year using the direct method? 0 2,700,000 0 2,000,000 0 3,300,000 0 3,000,000 Roger Company reported net income for the current year of P3.520,000. The entity provided the following additional data during the ye Purchase of plant assets 2,800,000 Depreciation of plant assets 1,480,000 Dividends declared 970,000 Net decrease in noncash current assets 290,000 Loss on sale of equipment 130.000 What is the net cash provided by operating activities in the statement of cash ows for the current year using the indirect method? 0 7,280,000 0 5,420,000 0 5,290,000 0 5,130,000 Mandarin Company has the following transactions for the current year: Acquisition of equity shares for cash (cash was borrowed from the bank) Issuance of 30,000 preference shares of P100 par value for land having fair value of Issuance of 5,000, 12%, P1 ,000 face value bonds for cash Payment of a short term bank loan Sale of investment securities for cash Purchase of patent for cash Increase in customer deposits What is the net cash provided by investing activities? 0 5,950,000 0 7,700,000 0 4,950,000 0 3,700,000 2,250,000 4,000,000 4,900,000 1 500,000 9,950,000 2,750,000 1 ,100,000 Matthew Company provided the following information for the current year: Purchase of inventory 1,950,000 Purchase of land, with the vendor financing P1,000,000 for 2 years 3,500,000 Purchase of plant for cash 2,500,000 Sale of plant: Carrying amount 500,000 Cash proceeds 400,000 Buyback of ordinary shares 700,000 What amount of investing net cash outflows should be reported in the statement of cash flows for the current year? 5,600,000 4,600,000 5,300,000 6,550,000Zodiac Company had the following activities for the current year: Payment for the retirement of bonds payable 3,700,000 Payment of cash dividend declared in the prior year 300,000 Carrying amount of convertible preference shares converted 600,000 into ordinary shares Proceeds from the sale of treasury shares 500,000 What is the net cash used in nancing activities? 0 3,570,000 0 4,000,000 0 2,900,000 0 3,500,000 Stone Company provided the following information at year end: 2020 2019 Accounts receivable 620,000 680,000 Inventory 1 ,960,000 1,840,000 Accounts payable 380,000 520,000 Accrued expenses 500,000 340,000 The income statement for the year ended December 31, 2020 showed the following data: Net income 2,120,000 Depreciation 240,000 Amortization of patent 80,000 Gain on sale of land 200,000 Required: Determine the cash flow from operating activities for 2020. Hill Company provided the following comparative statement of nancial position: 2020 2019 Cash and cash equivalents 750,000 950,000 Accounts receivable 1,750,000 1,100,000 Inventory 2,550,000 1 00,000 Prepaid expenses 100,000 150,000 Property, plant and equipment 5,300,000 4,300,000 Accumulated depreciation (1 ,150,000) (300,000) Accounts payable 1,250,000 1,000,000 Accrued expenses 50,000 200,000 Share capital 4,750,000 4,250,000 Retained earnings 3,250,000 2,050,000 Additional information The statement of retained earnings for 2020 showed net income of P1 ,500,000 and cash dividend paid of P300.000. During the year, the entity purchased equipment for cash and issued share capital for cash. Required: Prepare the statement of cash ows for 2020 using the indirect method. Forest Company provided the following information for the preparation of a statement of cash ows for the current year: 2020 2019 Cash and cash equivalents 593,000 300,000 Trading securities 300,000 200,000 Accounts receivable, net of allowance 600,000 520,000 Inventory 900,000 840,000 Property, plant and equipment 2,000,000 2,100,000 Goodwill 200,000 200,000 Accounts payable 490,000 800,000 Accrued expenses 310,000 210,000 Bonds payable 800,000 1,000,000 Preference share capital, P100 par, each share convertible 400,000 500,000 into two ordinary shares Ordinary share capital, P20 par 820,000 700,000 Share premium 500,000 400,000 Retained earnings 1,273,000 550,000 Additional information: 'I. Net income for the current year was P1 ,733,000. 2. Cash dividends paid during the year totaled P1,000,000. 3. The bonds mature on January 1, 2025. On December 31, 2020, bonds with face of P200,000 were retired at 105. 4. The entity sold 4,000 ordinary shares at P30 per share. 5. The decrease in preference share capital resulted from the exercise of the conversion privilege by preference shareholders. Required: Prepare the statement of cash ows for the current year
