Cash Flow Problem

Mega Corporation real account balances as of December 31, 2016 are given below:

Cash P 1,600,000

Accounts Receivable, net 1,440,000

Buildings and Equipment 6,000,000

Accumulated Depreciation ( 2,000,000)

Leaseholds 720,000

Accounts Payable 760,000

Common Stock, no par value 4,600,000

Retained Earnings 2,400,000

Presented below are the data used in the companys Statement of Cash Flows for the Year Ended December 31, 2017:

Contract Revenues P 2,000,000

Depreciation expense 600,000

Gain on sale of equipment 240,000

Rent expense 80,000

Proceeds from sale of equipment 480,000

Proceeds from issuance of common stock 1,600,000

Increase in accounts receivable 640,000

Increase in accounts payable 320,000

Payments for purchase of land 1,000,000

Payments for the purchase of buildings & Equipment 1,920,000

Payments for cash dividends 600,000

You were informed that for the accumulated depreciation on the equipment sold was P560,000. Leasehold is for 10 years at an original cost of P800,000.

1.) Based on the above information, prepare a Statement of Cash Flow for the year ended Dec.31,2017.

2.) Prepare a classified balance sheet as of Dec .31, 2017, use report form.