Statement of Cash Flow Problem

The Statement of Cash Flows for the fiscal year ended November 30, 2019, and other data for Metro Corporation are shown below:

Cash flows from operating activities:

Cash collections from customers 330,000

Dividends received 20,000

Cash outflows for:

Merchandise (100,000)

Salaries (50,000)

Taxes (25,000)

Other operating expenses (20,000)

Net cash provided by operating activities 155,000

Cash flows from investing activities:

Sales of investments 30,000

Purchased machinery (100,000)

Net cash used by investing activities ( 70,000)

Cash flows from financing activities:

Issue of capital stock 75,000

Net increase in cash 160,000

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Additional data:

1. Metros dividends receivable account increased by P2,000 during the year.
2. The machinery account, net of accumulated depreciation, increased by P70,000 during the year. The only other transaction, exclusive of depreciation, was the write-off on May 1, 2019, of obsolete machinery that had a book value of P5,000.
3. Accounts receivable increased by P60,000 during 2019. The allowance account increased by P5,000. There was no write-off of uncollectible accounts.
4. Salaries payable at the beginning of the year were P6,000; at the end of the year, P9,000.
5. Merchandise inventories decreased P24,000 during the 2019.
6. All purchases of merchandise are made in cash.
7. Taxes payable decreased P6,000 during the year.
8. The investments that were sold had a book value of P25,000.

Required:

Based on the above data:

1. Prepare Metro Corporations multi-step income statement for the year ended November 30, 2019.
2. Show the cash flow from operating activities using the indirect method.