Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Problem 2 Athena Comapny reorted net income of P5,000,000 and provided the following information for the current year: Amortization of patent P45,000 Depreciation on plant

Problem 2

Athena Comapny reorted net income of P5,000,000 and provided the following information for the current year:

Amortization of patent P45,000

Depreciation on plant assets 1,650,000

Long-term debt:

Bond discount amortization 65,000

Interest paid 900,000

Income tax:

Income tax expense 300,000

Increase in deferred tax liability 25,000

Purchased of additional financial asset at FVPL 1,000,000

Unrealized loss on financial asset hel for trading 100,000

Unrealized loss on financial asset at FVOCI 400,000

Reqquired:

Compute the iinterest expense for the current year

Compute the income tax paid for the current year

Compute the net cash provided by operating activities

Problem 3

Car Company reported net income of P5,000,000 for the current year and shown the following changes in several accounts:

Equipment P250,000 increase

Accumulated depreciation 400,000 increase

Note payable 300,000 increase

  • During the year, the entity sold equipment costing P250,000, with accumulated depreciation of P120,000 at a gain of P50,000.
  • In December, the entity purchased equipment costing P500,000 with P200,000 cash and 12% note payable of P300,000.

Required:

  1. Compute for the depreciation expense for the current period
  2. Compute for net cash provided or used by operating activities
  3. Compute for the net cash provided or used by investing activities

Problem 4

Nile Company provided the following information at the end of each year:

2020 2019

Borrowings P2,500,000 P 800,000

Share capital 3,500,000 2,000,000

Retained earnings 950,000 750,000

Borrowings of P300,000 were paid during 2020 and a new borrowing include P200,000 vendor financing arising on the acquisition of property.

The movement in retained earnings comprised profit for 2020 of P900,000 and net of cash dividend paid to the shareholders.

The movement in share capital arose from issuance of share capital for cash during the year.

Required:

  1. Compute for the cash acquired from new long-term borrowings
  2. Compute for the cash dividend declared and paid during the current year
  3. Compute the net cash provided or used by financing activities

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Law, Business And Society

Authors: Tony McAdams, Kiren Dosanjh Zucker, Kristofer Neslund, Kari Smoker

12th Edition

1259721884, 978-1259721885

More Books

Students also viewed these Accounting questions

Question

Coaching and motivational behavior

Answered: 1 week ago

Question

Always show respect for the other person or persons.

Answered: 1 week ago