Gross Profit P 5,200,000 Less: Operating Expenses (including P200,000 depreciation and bad debt expense of P100,000) ( 2,000,000) Net Operating Income P 3,200,000 Add: Gain on sale of investment property 700,000 Holding gain on trading securities 200,000 Less: Amortization of patent (300,000) Realized loss on sale of trading securities (100,000) Loss on sale of factory equipment (400,000) Income before interest and tax P 3,300,000 Less: Loss on interest expense (100,000) Net income before tax P 3,200,000 Less income tax expense 960,000 Net Income P 2,240,000 What is the net cash flow from operating activities for the year ended December 31, 2013? Problem 27. ASUS Corporation has recently decided to go public and has hired you as an independent CPA. One statement that the entity is anxious to have prepared is a statement of cash flows. Financial statements of ASUS for 2010 and 2009 are provided below. Statement of Financial Position 12/31/2010 12/31/2009 Cash 153,000 72,000 Accounts Receivable 135,000 81,000 Merchandise Inventory 144,000 180,000 PPE (net of Acc. Dep. of P120,000 and P114,000 as of 12/31/2010 and 12/31/2009, respectively) 108,000 246,000 540,000 579,000 Accounts payable 66,000 36,000 Income taxes payable 132,000 147,000 Bonds payable 135,000 225,000 Share capital 81,000 81,000 Retained earnings 126,000 90,000 540,000 579,000 Income Statement For the Year Ended December 31,2010 Sales 3,150,000 Cost of sales 2.682.000 Gross profit 168.000 Selling expenses 225,000 Administrative expenses 72.000 297.000 Income from operations 171,000 Interest expense 27,000 Profit before taxes 144,000 Income taxes 36.000 Profit or loss 108.000 The following additional data were provided: 1. Dividends for the year 2010 were P72,000. 2. During the year, equipment was sold for P90,000. This equipment cost P132,000 originally and had a book value of P108,000 at the time of sale. The loss on sale was incorrectly charged to cost of sales. 3. All depreciation expense is in the selling expense category. 1. What is the net cash provided by operating activities? a. 153,000 c. 108,000 90,000 d. 75,000