Operating Activities Indirect Method Workback

4) The following information relates to the activities of I Miss You Company. Income tax may be ignored.

Net cash flows form operating activities 720,000

Decrease in trade payables 23,000

Decrease in inventory 11,500

Increase in trade receivables 24,600

Cash proceeds from sale of plant (book value of P25,000) 14,000

Increase in allowance for doubtful debts 1,000

What is the profit for the period?

A. 698,100

B. 730,100

C. 744,100

D. 767,100

Investing Activities

5) Beerus Corporation provided the following information on selected transactions during 2017:

Proceeds from sale of equipment 100,000

Purchase of bonds, par P2,000,000 1,800,000

Amortization of bond discount 20,000

Dividends declared 450,000

Dividends paid 380,000

Proceeds from sale of treasury share (carrying amount of P650,000) 750,000

Purchase of land by issuing bonds 400,000

Loans made to affiliated corporations 560,000

Amortization of patent 50,000

Proceeds from issuing preference share 640,000

How much would be the net cash provided (used) by investing activities?

A. 2,660,000

B. 2,260,000

C. 2,100,000

D. 1,700,000