HOMEWORK ON STATEMENT OF CASH FLOWS

1. The income statement of Euro Company for 2017 contains the following:
Revenue from sales P 5,000,000
Cost of goods sold 3,000,000
Selling expenses 250,000
Depreciation and amortization 200,000
Salaries 300,000
Finance cost 50,000
Income tax expense 400,000
Net income 800,000
 All sales were for cash except for: (a) P85,000 sale resulting in the acceptance of one-year 12% note;
and (b) P150,000 sale resulting in the acceptance of a tract of land valued at P150,000.
 Accrued salaries at December 31, 2016 and 2017 were P55,000 and P37,000 respectively.
 Finance cost includes P6,750 amortization of bond discount.
 Income tax expense includes P45,000 deferred tax liability.
How much is the net cash provided by (used in) operating activities during 2017?

2. Rupiah Corporation reported net income of P1,500,000 for 2017. Changes occurred in a number balance
sheet accounts during 2017 as follows:
Investment in Currency Company shares carried on the equity method Increase of P80,000
Accumulated depreciation, caused by major repair to project equipment Decrease of P21,700
Premium on bonds payable Decrease of P23,800
Deferred tax liability Increase of P15,900
In the 2017 Statement of Cash Flows, net cash provided by (used in) operating activities?

3. The following information pertains to Dinar Company for the year ended December 31, 2017:
Ending Beginning
Balances Balances
Accounts receivable P 10,000 P 12,000
Allowance for Doubtful Accounts 2,900 2,500
Service revenuefor the year 50,000
Net income for the year 5,000
Doubtful Accounts Expense for the year 1,000
Write-off of uncollectible accounts for the year 600
Cash expenses for the year 44,000
How much is the net cash provided by (used in) operating activities?

4. During 2017, Ringgit Company has the following activities related to its financing operations:
Payment for the early retirement of long-term bonds payable (carrying amount is
P3,800,000) P 3,950,000
Declaration in 2017 of cash dividend to preference shareholders to be paid in
January 2018 300,000
Carrying amount of convertible preference shares converted into ordinary shares 600,000
Proceeds from sale of treasury shares (carrying amount at cost, P430,000) 400,000
In the 2017 Statement of Cash Flows, how much is the net cash flow from financing activities?
 5. Shekel Company entered into the following transactions during the year:
Purchase of trading securities P 500,000
Sale of trading securities 220,000
Purchase of FVOCI securities 900,000
Sale of FVOCIsecurities 470,000
The company had no investment securities at the beginning of the year. The cost of the trading securities
sold was P300,000; the cost of the FVOCI securities sold was P150,000. The market value of the
remaining securities on December 31 was as follows: trading securities, P310,000; FVOCI securities,
P460,000. The net income for the year was P1,000,000. Assume that net income does not include any
noncash items except for those related to investment securities, compute the net cash provided by (used
in) (a) operating and (b) investing activities?

Manat Company provided the following for the current year:

Dec. 31 Jan. 1
Dividends payable P 34,000 P 22,000
Equipment 925,000 780,000
Accumulated depreciation – equipment 283,000 300,000
Unappropriated retained earnings 710,000 500,000
Appropriated retained earnings 20,000 -
The entity also provided the following information:
(a) Profit for the year, P1,000,000.
(b) Depreciation expense for the year, P74,000.
(c) During the year, equipment was overhauled at a cost of P25,000. The amount was debited to
accumulated depreciation.
(d) During the year, equipment with a carrying amount of P100,000 was sold at a loss of P11,000.
6. How much was the equipment purchased during the year?
7. How much were the dividends paid during the year?

8. The following information were taken from the accounting records of Punt Company:
Jan. 1 Dec.31
Cash P620,000 P ?
Accounts receivable 670,000 910,000
Merchandise inventory 860,000 780,000
Accounts payable 530,000 480,000
Total sales and cost of sales for the current year were P7,980,000 and P5,830,000 respectively. All sales
and purchases of merchandise were made on credit. Various expenses of P1,070,000 were paid in cash.
There were no other pertinent transactions. How much is the cash balance at December 31?

Drachma Company provided the following for the current year:

Sales on account P1,300,000
Cash sales 740,000
Decrease in accounts receivable 610,000
Increase in trade notes receivable 125,000
Increase in accounts payable 72,000
Decrease in notes payable to bank 75,000
Increase in inventory 48,000
Cost of goods sold 975,000
9. How much is the total collections from customers for the year?
10. How much is the total cash payments to suppliers for the year?