Question
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
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
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
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Accounting Tools For Business Decision Making
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso
4th Edition
0470534788, 978-0470534786
