PROBLEM 1.

Gloria Company provided the following information during the current year.
Dividend received 500,000
Dividend paid 1,000,000
Cash received from customers 9,000,000
Proceeds from issuing share capital 1,500,000
Interest received 200,000
Proceeds from sale of long term investments 2,000,000
Cash paid to suppliers and employees 6,000,000
Interest paid on long term debt 400,000
Income taxes paid 300,000
Cash balance, January 1 1,800,000

1. What is the net cash provided by operating activities for the current year using direct method?
a. 600,000 b. 400,000 c. 300,000 d. 200,000
2. What is the net cash provided by investing activities?
a. 2,200,000 b. 1,400,000 c. 3,000,000 d. 800,000
3. What is the net cash provided by financing activities?
a. 4,000,000 b. 6,000,000 c. 3,800,000 d. 6,200,000
4. What is the cash balance at year-end?
a. 3,500,000 b. 9,300,000 c. 5,500,000 d. 5,800,000

PROBLEM 2.
Shan Cai Company provided the following for the current year:
Increase in long-term debt 5,000,000
Purchase of treasury shares 1,000,000
Depreciation and amortization 1,500,000
Gain on Sale of Equipment 500,000
Proceeds from issuance of share of capital 2,000,000
Payment of cash dividend 2,500,000
Net income 8,000,000
Increase (Decrease) in working capital accounts:
Accounts Receivable 2,000,000
Inventory (3,500,000)
Trade accounts and notes payable 4,000,000
Income tax payable (4,500,000)
Cash balance, January 1 6,000,000

1. What is the net cash provided by operating activities for the current year using direct
method?
a. 10,000,000 b. 11,000,000 c. 7,500,000 d. 8,500,000
2. What is the net cash provided by investing activities?
a. 7,000,000 b. 5,000,000 c. 9,000,000 d. 2,000,000
3. What is the net cash provided by financing activities?
a. 9,000,000 b. 8,000,000 c. 5,500,000 d. 2,500,000
4. What is the cash balance at year-end?
a. 16,500,000 b. 10,500,000 c. 21,500,000 d. 26,500,000