Beruflich Dokumente
Kultur Dokumente
BSA-321
41
Problem 41-1
Alpha company had the following activities during the current year.
In the statement of cash flows, what amount should be reported as net cash used in
investing activities?
a. 3,725,000
b. 3,805,000
c. 3,980,000
d. 4,100,000
Problem 41-2
2015 2014
Cash 150,000 100,000
All accounts receivable relate to trade merchandise. Cash discounts are not allowed to
customers but a service charge is added to an account for late payment. The allowance
for doubtful accounts at the end of 2015 was the same at the end of 2014. No
receivables were charged against allowance during 2015.
Under investing activities, what amount should be reported as cash outflows during
2015?
a. 265,000
b. 265,000
c. 305,000
d. 40,000
Problem 41-3
Riverside Company provided the following information for the current year:
Purchased a building for P1,200,000. Paid P400,000 and signed a mortgage with
the seller for the remaining P800,000.
Executed a debt-equity swap and replaced a P600,000 loan by giving the lender
ordinary shares worth P600,000 on the date the swap was executed.
Purchased land for P1,000,000. Paid P350,000 and issued ordinary shares worth
P650,000.
Borrowed P550,000 under a long-term loan agreement. Used the cash from the
proceeds as follows: P150,000 for purchase of additional inventory, P300,000 to
pay cash dividend, and P100,000 to increase the cash balance.
What amount should be reported as net cash used in investing activities in the
statement of cash flows?
a. 1,200,000
b. 2,200,000
c. 400,000
d 750,000
Problem 41-4
Karr Company reported net income of P3,000,000 for the current year. Changes
occurred in certain accounts as follows:
1. In the statement of cash flows, what amount should be reported as net cash used in
investing activities?
a. 20,000
b. 120,000
c. 220,000
d. 350,000
2. In the statement of cash flows, what amount should be reported as net cash provided
by operating activities?
a. 3,400,000
b. 3,470,000
c. 3,520,000
d. 3,570,000
Solution 41-4
Question 1 Answer a
Question 2 Answer b
Zoe Company reported of net income of P3,400,000 for the current year. The net
income included depreciation of P840,000 and a gain on sale of equipment of
P170,000. The equipment had an original cost of P4,000,000 and accumulated
depreciation of P2,400,000. All of the following accounts increased during the current
year.
Patent 450,000
What amount should be reported as net cash flow from investing activities?
a. 1,720,000 provided
b. 1,220,000 provided
c. 540,000 provided
d. 380,000 used
Problem 41-6
Zahn Company’s comparative statement of financial position on December 31, 2015
and 2014 reported accumulated depreciation balances of P800,000 and P600,000
respectively.
Property with a cost of P50,000 and carrying amount of P40,000 was the only property
sold in 2015.
a. 190,000
b. 200,000
c. 210,000
d. 220,000
Total 810,000
Problem 41-7
Sale of plant:
a. 5,600,000
b. 4,600,000
c. 6,550,000
d. 5,300,000
Problem 41-8
January 1 December 31
What amount was paid for the new machinery as a result of the trade in?
a. 850,000
b. 600,000
c. 550,000
d. 650,000
Total 4,450,000
Problem 41-9
12/31/2014 12/31/2015
During 2015 the entity sold for P260,000 a machine that cost P400,000 and purchased
several items of machinery.
1. what is the depreciation of machinery for 2015?
a. 180,000
b. 240,000
c. 280,000
d. 320,000
a. 340,000
b. 700,000
c. 960,000
d. 1,100,000
Solution 41-9
Question 1 Answer c
Total 1,300,000
Cost 400,000
Question 2 Answer d
Total 3,600,000
During the current year, Teb Company had the following activities related to financial
operations:
In the statement of cash flows for the current year, what amount should be reported as
net cash used in financing activities?
a. 7,170,000
b. 7,160,000
c. 5,970,000
d. 5,350,000
The conversion of preference shares into ordinary shares is a noncash financing activity
and therefore has no cash effect.
As a simple guide, cash effects of transactions involving nontrade liabilities and
shareholder’s equity are financing activities.
Problem 41-11
a. 200,000
b. 270,000
c. 300,000
d. 370,000
a. 1,700,000
b. 1,760,000
c. 1,880,000
d. 1,940,000
Solution 41-11
Question 1 Answer d
Question 2 Answer a
Problem 41-12
Kollar Company provided the following data for the current year:
Dividend paid
a. 5,000,000
b. 3,500,000
c. 4,500,000
d. 5,500,000
b. 3,750,000
c. 1,750,000
d. 500,000
Solution 41-12
Q1 Answer b Q2 Answer c
Problem 41-13
Nelie Company provide the following information extracted from the accounting records
at the end of each year:
2015 2014
Borrowings of P300,000 were repaid during 2015 and new borrowings include P200,000
vendor financing arising on the acquisition of a property.
The movement in retained earnings comprises profit for 2015 of P900,000 net of
dividend paid of P700,000.
The movement in share capital arose from issuance of share capital for cash during the
year.
There was no dividend payable reported at the beginning and end of the current year.
What amount should reported as financing net cash inflows in the statement of cash
flows?
a. 2,400,000
b. 2,200,000
c.2,500,000
d.2,300,000
Solution 41-13
Problem 41-14
During 2015, a P4,500,000 payment was made to retire the bonds payable with a face
amount of P5,000,000. Bonds payable with a face amount of P2,000,000 had been
issued in exchange for equipment.
In the statement of cash flow for the current year, what should be reported as proceeds
from issuance of bonds payable?
a. 15,000,000
b. 17,500,000
c. 18,000,000
d. 22,000,000
Total 25,000,000
Problem 41-15
Sarah Company reported bonds payable of P4,700,000 on December 31, 2014 and
P5,000,000 on December 31, 2015. During 2015, the entity issued P2,000,000 of bonds
payable in exchange for equipment. There was no amortization of premium or discount
during the year.
a. 300,000
b.1,700,000
c. 2,000,000
d. 2,300,000
Problem 41-16
2015 2014
What amount was paid for dividends during the current year?
a. 2,100,000
b. 1,500,000
c. 1,900,000
d. 2,600,000
Total 4,500,000
Problem 42-1
Lax Company provided the following information during the current year.
1. What is the net cash provided by operating activities or the current year using direct
method?
a. 3,000,000
b. 3,300,000
c. 2,700,000
d. 2,000,000
a. 2,500,000
b. 2,000,000
c. 2,200,000
d. 0
3. What is the net cash provided by financing activities?
a. 1,500,000
b. 1,000,000
c. 500,000
d. 0
Solution 42-1
Q1 Answer a
Cash receipts:
Cash payments:
Q2 Answer b
Note that alternatively the dividend received and interest received may be classified as
investing cash flow.
Q3 Answer c
Note that alternatively the dividend paid may be classified as operating cash flow.
Problem 42-2
Star Company provided the following data for the preparation of the statement of cash
flows for the current year using the direct method.
a. 1,900,000
b. 2,900,000
c. 2,350,000
d. 400,000
a. 3,000,000
b. 2,000,000
c. 1,800,000
d. 4,200,000
b. 1,600,000
c. 1,400,000
d. 2,400,000
Solution 42-2
Q1 Answer a
Problem 42-3
Fragile Company used the direct method to prepare the statement of cash flows the
entity had the following cash flows during the current year:
a. 600,000
b. 400,000
c. 300,000
d. 200,000
a. 2,200,000
b. 1,400,000
c. 3,000,000
d. 800,000
a. 4,000,000
b. 6,000,000
c. 3,800,000
d. 6,200,000
a. 3,500,000
b. 9,300,000
c. 5,500,000
d. 5,800,000
Solution 42-3
Q1 Answer a
Q2 Answer b
Q3 Answer c
Q4 Answer b
Problem 42-4
Inventory (3,500,000)
a. 10,000,000
b. 11,000,000
c. 7,500,000
d. 8,500,000
a. 7,000,000
b. 5,000,000
c. 9,000,000
d. 2,000,000
a. 9,000,000
b. 8,000,000
c. 5,500,000
d. 2,500,000
a. 16,500,000
b. 10,500,000
c. 21,500,000
d. 26,500,000
Solution 42-4
Q1 Answer a
Q2 Answer b
Q3 Answer c
Q4 Answer a
Problem 42-5
2015 2014
Accounts payable are recorded net and always paid to take all of the discounts allowed.
The allowance for doubtful accounts at the end of 2015 was the same as at the end ofd
2014. No receivable were charged against the allowance during 2015.
The proceeds from the note payable were used to finance a new store building.
a. 5,560,000
b. 5,850,000
c. 6,140,000
d. 6,400,000
a. 4,670,000
b. 4,910,000
c. 5,000,000
d. 5,150,000
a. 400,000
b. 100,000
c. 200,000
d. 110,000
4. What is the net cash provided by financing activities?
a. 140,000
b. 300,000
c. 500,000
d. 700,000
a. 80,000
b. 530,000
c. 610,000
d. 660,000
Solution 42-5
Q1 Answer c
Total 6,980,000
Q2 Answer d
Q3 Answer d
Q4 Answer d
Q5 Answer c
*Total sales were P12,000,000 for 2015 and P11,000,000 for 2014.
*Variable general and administrative expenses for 2015 were P1,200,000. The variable
expenses have varied in proportion in sales.
Variable expenses have been paid 50% in the year incurred and 50% the following year.
*Fixed expenses, including P350,000 depreciation and P50,000 bad debt expense,
totaled P1,000,000 each year.
Eighty percent of fixed expenses involving cash were paid in the year incurred and 20%
the following year.
Each year there was a P50,000 bad debt estimate and a P50,000 write off.
a. 12,010,000
b.12,060,000
c. 11,960,000
d. 11,890,000
a. 9,800,000
b. 8,300,000
c. 8,500,000
d. 8,400,000
a. 8,500,000
b. 8,270,000
c. 8,300,000
d. 8,200,000
a. 1,000,000
b. 1,400,000
c. 600,000
d. 800,000
a. 1,200,000
b. 1,100,000
c. 1,150,000
d. 1,750,000
Solution 42-6
Q1 Answer a
Total 12,840,000
Q2 answer b Q3 answer b
Total 9,250,000
Q4 answer c Q5 answer c
Depreciation (350,000)
2015 2014
An investment was sold for P250,000 during the year. There was no disposal of plant
during the year. The profit for the year was P600,000, after income tax expense of
P105,000. A dividend of P470,000 was paid on December 31, 2015.
a. 475,000
b. 470,000
c. 370,000
d. 570,000
a. 500,000
b. 750,000
c. 250,000
d. 400,000
b. 470,000
c. 970,000
d. 30,000
Solution 42-7
Q1 answer c
Q2 answer c
Q3 answer d
Problem 42-8
Divine Company provided the following statement of financial position on December 31,
2015 and 2014 and information relating to 2015 activities:
2015 2014
Assets
*Equipment costing P800,000 and having a carrying amount of P300,000 was sold in
2015 for P300,000.
*A long term investment was sold in 2015 for P270,000. There were no other
transactions affecting long term investments in 2015.
*The trading securities were purchased for a cash on December 31, 2015.
b. 1,830,000
c. 1,280,000
d. 1,900,000
a. 2,230,000
b. 1,790,000
c. 1,730,000
d. 1,630,000
a. 610,000
b. 880,000
c. 910,000
d. 1,090,000
Solution 42-8
Q1 Answer c
Depreciation 500,000
(800,000-300,000) 500,000
Q2 answer a
Total 4,200,000
Q3 answer a
Problem 42-9
Flax Company used the direct method to prepare the statement of cash flows. The
entity provided the following information:
2015 2014
7,567,000 9,761,000
7,567,000 9,761,000
The entity allocated 1/3 of depreciation expense to distribution costs and the remainder
to general and administrative expenses.
What amount should be reported in the statement of cash flows for the year ended
December 31, 2015 for the following:
b. 5,416,000
c. 5,360,000
d. 5,358,000
a. 2,585,000
b. 2,575,000
c. 2,425,000
d. 2,265,000
a. 48,000
b. 43,000
c. 38,000
d. 17,000
a. 258,000
b. 204,000
c. 197,000
d. 150,000
a. 1,420,000
b. 1,415,000
c. 1,410,000
d. 1,400,000
Problem 42-10
Beal company reported the following differences in the statement of financial position
accounts on December 31, 2015 and 2014:
Increase/ (decrease)
Assets
Inventory 80,000
PPE 700,000
Accumulated depreciation -
1,100,000
1,100,000
a. 1,160,000
b. 1,040,000
c. 920,000
d. 705,000
a. 1,005,000
b. 1,190,000
c. 1,275,000
d. 1,600,000
a. 20,000
b. 45,000
c. 150,000
d. 205,000
Solution 42-10
Q1 answer c
Depreciation 250,000
(600,000-350,000) 250,000
Q2 answer a
Total 1,300,000
Q3 answer d