FINANCIAL ACCOUNTING AND REPORTING 3

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41. In its accrual basis income statement for the year ended December 31, 2015, Nelson Company reported revenue of P3,500,000. Additional information is as follows: Accounts receivable--December 31, 2014.. P 750,000 Net income for 2015 ...................................... 140,000 Accounts receivable--December 31, 2015.. 1,010,000 Nelson should report cash collected from customers in its 2015 statement of cash flows (direct method) in the amount of a. P3,240,000 b. P3,100,000 c. P3,380,000 d. P3,760,000 42. Dicksen Companys income statement for the year ended December 31, 2015, reported net income of P360,000. The financial statements also disclosed the following information: Amortization ...................................................................... P 20,000 Depreciation ..................................................................... 60,000 Increase in accounts receivable..................................... 140,000 Increase in inventory......................................................... 48,000 Decrease in accounts payable....................................... 76,000 Increase in salaries payable............................................. 28,000 Dividends paid .................................................................. 120,000 Purchase of equipment.................................................... 150,000 Increase in long-term note payable ............................... 300,000 Net cash provided by operating activities for 2015 should be reported as a. P84,000 b. P204,000 c. P234,000 d. P324,000 43.The following information is available from the financial statements of Worthington Corporation for the year ended December 31, 2015: Net income........................................................................ P 396,000 Depreciation expense...................................................... 102,000Decrease in accounts receivable................................... 126,000 Increase in inventories ...................................................... 90,000 Increase in accounts payable......................................... 24,000 Payment of dividends....................................................... 54,000 Purchase of available-for-sale securities......................... 22,000 Decrease in income taxes payable................................ 16,000 What is Worthington Corporations net cash flow from operating activities? a. P440,000 b. P466,000 c. P520,000 d. P542,000 44.The following information is available from Ram Corporation's accounting records for the year ended December 31, 2015: Cash paid to suppliers and employees ..........................P 1,020,000 Cash dividends paid......................................................... 60,000 Cash received from customers........................................ 1,740,000 Rent received.................................................................... 20,000 Taxes paid.......................................................................... 220,000 Net cash flow provided by operating activities for 2015 was a. P440,000 b. P460,000 c. P500,000 d. P520,000 45.Detmer Company's prepaid rent was P40,000 at December 31, 2015, and P15,000 at December 31, 2014. Detmer's income statement for 2015 reported rent expense as P10,000. What amount of cash disbursements for rent would be reported in Detmer's net cash flows from operating activities for 2015 presented on a direct basis? a. P10,000 b. P20,000 c. P35,000 d. P45,000