EXERCISES 7. Answer the following problem: 1. Gain on sale of property and equipment is part of what activity in the CFS? 2. Changes in long term liabilities is part of what activity in the CFS? 3. Net income is part of which Approach in preparing the CFS? 4. The company presented the following in order to aid the accountant in preparing the CFS; a, Net income: P200,000 b. Depreciation expense: P 25,000 c. Gain on sale of property and equipment: P100,000 d. Decrease in trade and other receivables; P 70,000 e. Purchase of property and equipment: P200,000 f. Payment of loan from bank: P150,000 Compute for the cash generated/used in financing activities. Challenge: 5. Based on the given above, compute for the net change in cash for the year. 6. If ending balance of cash account is P700,000, prepare the CFS for the year