FINANCIAL ACCOUNTING AND REPORTING 3

PLEASE SOLVE ALL WITH COMPUTATIONS

46.Pecan Company sold a computer for P50,000. The computers original cost was P250,000, and the accumulated depreciation at the date of sale was P180,000. The sale of the computer should appear on Pecans annual statement of cash flows (indirect method) as a. a reduction in cash flows from operating activities of P20,000 and an increase in cash flows from investing activities of P50,000. b. an increase in cash flows from operating activities of P20,000 and an increase in cash flows from investing activities of P50,000. c. a reduction in cash flows from operating activities of P20,000 and an increase in cash flows from investing activities of P70,000. d. an increase in cash flows from operating activities of P20,000 and an increase in cash flows from investing activities of P70,000.

47.Hale Inc. declared and paid cash dividends of P100,000 on common stock and P75,000 on preferred stock. How would these dividends be presented in Hales statement of cash flows? a. As a P100,000 reduction in cash flows from investing activities. b. As a P175,000 reduction in cash flows from investing activities. c. As a P100,000 reduction in cash flows from financing activities. d. As a P175,000 reduction in cash flows from financing activities. 48.During 2015, Lewis Corp. acquired buildings for P325,000, paying P75,000 cash and signing a 10% mortgage note payable in 10 years for the balance. How should the transaction be shown in the cash flow statement for Lewis in 2015? a. As a P325,000 reduction in cash flows from investing activities and a P250,000 increase in cash flows from financing activities. b. As a P325,000 reduction in cash flows from investing activities. c. As a P75,000 reduction in cash flows from investing activities. d. As a P250,000 increase in cash flows from financing activities. 49.Stiggins Corporation had the following account balances for 2015: December 31 January 1 Accounts Payable........................P67,200 P58,200 Prepaid Rent Expense.................... 24,600 37,200 Accounts Receivable (net) ........... 84,000 66,600 Stiggins' 2015 net income is P450,000. What amount should Stiggins include as net cash provided by operating activities in its 2015 statement of cash flows? a. P436,200 b. P445,200 c. P453,600 d. 454,200 50.Chow Company's 2015 income statement reported cost of goods sold as P135,000. Additional information is as follows: December 31, 2015 December 31, 2014 Inventory............................ P 30,000 P 22,500 Accounts Payable ............ 13,000 19,500 If Chow uses the direct method, what amount should Chow report as cash paid to suppliers in its 2015 statement of cash flows? a. P121,000 b. P134,000 c. P136,000 d. P149,000