PROBLEM-CASH FLOWS Problem 3 Mrs. Mabunina Mae Galisfa, the owner of Taguiyawat Trading asked you to prepare the cash flow statement for 2021. You were given the 2021 Income Statement and comparative Statement of Financial Position for 2021 and 2020 and are presented below: Income Statement For the Year Ended Dec. 31,2021 Revenue: Net Sales Cost of Goods Sold Gross Income Gain on Sale of marketable securities Total Revenue Operating Expenses (including depreciation of P1,800,000) Interest Expense Income Taxes 38,880,000 (19,440,000) 19,440,000 408.000 14,880,000 504,000 19,848,000 Loss on sale of plant assets Total expenses Net Income Statement of Financial Position As of December 31, 2021 & 2020 Cash and Cash Equivalents Marketable Securities Accounts Receivable M. Inventory Prepaid Expenses Plant, properties and equipment (net) Total Assets LIABILITIES AND STOCKHOLDER'S EQUITY Accounts Payable Accrued Interest Payable Accrued Operating Expense Payable 1,200,000 144,000 16.728.000 P 3,120,000 2021 1,968,000 2020 4,728,000 2,580,000 2,316,000 3,220,200 2,500,200 6,840,000 7,560,000 504,000 14.160.000 P 29,272,200 432,000 8,592,000 P 26,128,200 672,000 864,000 216,000 168,000 522,000 690,000 Accrued Income Tax Payable 262,200 358,200 Notes Payable 1,200,000 1,488,000 Share Capital 12,000,000 11,760,000 Share Premium 5,760,000 3,840,000 Retained Earnings 8,640,000 6,960,000 Total Liabilities and Stockholder's Equity P 29,272,200 P26,128,200 Additional Information: 1. The book value of plant assets sold is P432,000 2. The cost of marketable securities sold is P456,000 3. Partial payment of Notes Payable - P1,104,000