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1.) How much is the prepaid expenses on Dec. 31, 2020?

2.) Guardian Angel Company reported the following for its most recent fiscal year: Net income, - P200,000; Depreciation expense 50,000; Increase in accounts receivable 10,000; Decrease in merchandise inventory -2,000; Increase in prepaid expenses 1,000; Decrease in accounts payable 9,000; Increase in wages payable 3,000; Decrease in bonds payable 5,000; Loss on sale of machinery 1,000. What is the net cash flows from Operating Activities?

The condensed income statement of J&J Co. for the year ended December 31, 2021 is presented below: J&J Co. Income Statement For the Year Ended December 31, 2021 Sales Cost of goods sold Gross income Operating expenses Net income 1,000,000 600,000 400,000 150,000 250.000 An examination of the company records shows the following errors must be corrected: 1. December 31, 2021 inventory is understated by: P31,000. 2. Accrued expenses of P4,000 and prepaid expenses of P6,000 were not recognized in the company's books. The company employs the expense method in accounting for prepayments. 3. Sales of P5,000 were not recorded until January 2022, although the goods were shipped in December 31, 2021, and were excluded from the December 31 physical inventory. 4. Purchases of P30,000 made in December 31, 2021, were not recorded although the goods were received and properly included in the December 31, physical inventory. 5. A machine was sold for P10,000 on July 1, 2021, and the proceeds were credited to the Sales account. The machine was acquired on January 1, 2018 for P60,000. At that time, it had an estimated life of six years with no residual value. No depreciation was recorded on this machine in 2021