PROBLEM

1. Wowowee Corporation 2nd year in business posted a net income of 70,000,000 for the year ended December 31, 2012. The following data are extracted from the books of accounts Depreciation 32,000,000 Decrease in accounts payable 3,400,000 Increase in prepaid expenses 1,500,000 Forex Loss 22,400,000 Dividends paid 25,500,000 The Company should report as cash provided by operations in its cash flow statement for the year ended December 31, 2012 at A. 100,100,000 B. 119,500,000 C. 100,400,000

CORRECT ANSWER: B. 119,500,000

Use the following information for the next two (2) questions: The statement of financial position data of Davao Company at the end of 2020 and 2019 follow: 2020 2019 Increase (Decrease) Cash P 125,000 P 175,000 (P50,000) Accounts receivable (net) 300,000 225,000 75,000 Inventory 350,000 225,000 125,000 Prepaid expenses 50,000 125,000 ( 75,000) Buildings and equipment 450,000 375,000 75,000 Accumulated depreciationbuildings and equipment (90,000) (40,000) 50,000 Land 450,000 200,000 250,000 P1,635,000 P1,285,000 P350,000 Accounts payable P 340,000 P 275,000 P65,000 Accrued expenses 60,000 90,000 ( 30,000) Notes payablebank, long-term 200,000 (200,000) Mortgage payable 150,000 150,000 Share capital, P10 par 1,045,000 795,000 250,000 Retained earnings (deficit) 40,000 (75,000) 115,000 P1,635,000 P1,285,000 P350,000 Land was acquired for P250,000 in exchange for ordinary shares, par P250,000, during the year; all equipment purchased was for cash. Equipment costing P25,000 was sold for P10,000; book value of the equipment was P20,000 and the loss was reported as an ordinary item in net income. Cash dividends of P50,000 were charged to retained earnings and paid during the year; the transfer of net income to retained earnings was the only other entry in the Retained Earnings account. Based of the foregoing information, compute for the following. 1) Net cash provided by operating activities. A. 120,000 B. 130,000 C. 140,000 D. 165,000 2) Net cash provided by (used in) financing activities. A. 150,000 provided B. 350,000 provided C. 100,000 used D. 250,000 used