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WITH COMPLETE SOLUTION PLEASE THANK YOU The following profit or loss information is available for Catherine Company for the year ended December 31, 2020: Sales
WITH COMPLETE SOLUTION PLEASE THANK YOU
The following profit or loss information is available for Catherine Company for the year ended December 31, 2020: Sales 2,400,000 Cost of goods sold 1,800,000 Selling expenses 280,000 Administrative expenses 60,000 Interest expense 20,000 Gain on sale of equipment 10,000 Income tax expense 75,000 The current assets and liabilities at the end of 2020 and 2019 are as follows: 12/31/2019 Cash Accounts receivable Inventories Accounts payable 12/31/2020 369,000 180,000 380,000 290,000 230,000 140,000 350,000 230,000 Additional information: 1. Depreciation of P110,000 is included. P80,000 in selling expenses and P30,000 in administrative expenses. 2. During the year, equipment was sold for P100,000 cash. This equipment cost P150,000 and had a carrying value of P90,000. 3. New equipment was purchased for P70,000 cash. 4. P120,000 dividends were declared and paid. 5. The company purchased 300 treasury shares for cash of P36,000. Requirement: Compute for the: Cash flows provided by/(used in) Operating Activities (a] Cash flows provided by/(used in) Investing Activities [b] Cash flows provided by used in) Financing Activities (c) Cash, Ending (d) Requirement: Prepare the Statement of Cash Flows using the indirect methodStep by Step Solution
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