Question 15 pts

1. Peter Senen uses the direct method to prepare its statement of cash flows:
Peter Senen had the following cash flows during 2020:

        Cash receipts from issuance of ordinary shares                                  P800,000

        Cash receipts frocustomers                                                                      400,000
        Cash receipts from dividends on long term investments                    60,000
        Cash receipts from repayment of loan made to another company 440,000
         Cash payments for wages & other operating expenses      240,000
          Cash payment for insurance                                                                           20,000

                Cash payment for dividends                                                                           40,000

                Cash payment for taxes                                                                                     80,000

                Cash payment to purchase land                                                                  160,000

 
     What is the net cash provided (used) from operating activities?

b. P60,000

d. P120,000

. P80,000

a. (P40,000)

Question 25 pts
JYD Company uses the direct method to prepare its statement of cash flows. JYD
had the following cash flows during 2020:
 
                Cash receipts from sale of n old van                                                        P 160,000

                Cash receipts from issuance of ordinary shares                                 2,000,000

                Cash receipts from issuance of 10%, 10 year bonds                          1,500,000

                Cash receipts from customers                                                                    1,000,000

                Cash receipts from repayment of loan made to other company    1,200,000

                Cash receipts for dividends                                                                            150,000

                Cash receipts as interest                                                                                  150,000

                Cash payment for operating expenses                                                      650,000

                Cash payments for taxes                                                                                 300,000

                Cash payments for equity securities bought                                          900,000

                Cash payments for equipment purchased                                               300,000

                Cash payment for land purchased                                                            1,200,000

 
What is the net cash provided (used) from investing activities?

d. (P2,240,000)

b. P1,640,000

c. P1,940,000

a. (P1,040,000)

Question 35 pts
. Ethel Company uses the direct method to prepare its statement of cash flows. Ethel
had the following cash flows during 2020:
 
                Cash receipts from issuance of bonds                                                     P 800,000

                Cash receipts from issuance of ordinary shares                                  1,400,000

                Cash receipts from customers                                                                       700,000

                Cash receipts from dividends on long term investments                                   105,000

                Cash receipts from repayment of loan made to another company  660,000

                Cash payments for wages & other operating expenses                     420,000

                Cash payments for reacquisition of treasury shares                           250,000

                Cash payments for dividends                                                                         70,000

                Cash payments for taxes                                                                                140,000

                Cash payments for purchase of land                                                         280,000

 
What is the net cash provided (used) from financing activities?
b. P1,670,000

d. P1,950,000

a. P1,530,000

c. P1,880,000

Question 45 pts
Combate Company provided the following relevant information involving its operating
activities for the year ended December 31, 2020
                                                                                12/31/2019         12/31/2020
Accrued interest payable recognized      P40,000              P50,000
Depreciation expense recognized              72,800                   75,600
Prepaid expenses recognized                        3,100                     4,940
 
For the year ended December 31, 2020, Combate Company reported a net income
after tax of P648,000.
 
What is the net cash flow from operating activities that would be shown in its cash
flow statement?

a. P637,040

c. P731,760

d. P735,440

b. P637,080

Question 55 pts
The net income for the year ended December 31, 2020 for Bonghil Corporation was
P3,520,000. Additional data follow:
 
                Purchase of plant assets                                               P2,800,000
                Depreciation of plant assets                          1,480,000
                Dividends declared on plant assets               970,000
                Net decrease in non-cash current assets     290,000
                Loss on sale of equipment                                130,000
 
What should be the cash provided (used) from operating activities in Bonghil’s
statement of cash flows for the year ended December 31, 2020?
c. P5,420,000

b. P5,290,000

d. P7,250,000

a. P5,130,000

Question 65 pts
JYD Company reported the following information for the current year:
 
                Sales                                                                      P2,800,000
                Cost of goods sold                                             1,000,000
                Distribution costs                                                  400,000
                Administrative expenses                                   350,000
                Depreciation                                                           250,000
                Interest expense                                                    80,000
                Income tax expense                                            280,000
 All sales were made for cash and all expenses other than depreciation and bond
premium amortization of P20,000 were paid in cash. All current assets and current
liabilities remained unchanged.
 
What is the net cash provided (used) by operating activities for the current year?

d. P710,000

b. P690,000

c. P670,000

a. P440,000

Question 75 pts
Melanie Company had the following account balances for the current year:
 

                                                                                December 31                     January 1

Accounts payable                                            P500,000                              P700,000

Inventory                                                              300,000                                 450,000

Accounts receivable                                         800,000                                 750,000

All purchases of inventory were on account.

The entity provided the following income statement information for the current year:

                Revenue                                                              P9,800,000

                Cost of goods sold                                           (4,000,000)

                Other expenses                                                               (1,300,000)

                Depreciation expense                                   (1,000,000)

                Loss on sale of equipment                           (    100,000)

                Net Income                                                        P3,400,000

 
What is the net cash provided (used) by operating activities?
b. P4,400,000

c. P4,600,000

d. P4,300,000

a. P4,500,000

Question 85 pts
8. Peter Senen Company provided the following data for the current year:

 
                Sales                                                      P7,500,000
                Cost of goods sold                           ( 4,000,000)
                Expenses paid                                   ( 1,100,000)
                Depreciation                                      (     400,000)
                Net Income                                        P2,000,000
 
Increase in accounts receivable                 P500,000
Decrease in inventory                                  1,000,000
Decrease in accounts payable                      600,000
 
What amount of cash was received from the customers?
a. P8,000,000

d. P5,500,000

c. P6,500,000

b. P7,000,000

Question 95 pts
. Peter Senen Company provided the following data for the current year:
 
                Sales                                                      P7,500,000
                Cost of goods sold                           ( 4,000,000)
                Expenses paid                                   ( 1,100,000)
                Depreciation                                      (     400,000)
                Net Income                                        P2,000,000
 
Increase in accounts receivable                 P500,000
Decrease in inventory                                  1,000,000
Decrease in accounts payable                      600,000
 
 
 
What amount of cash was paid to suppliers?
c. P4,000,000
b. P2,400,000

a. P3,000,000

d. P3,600,000
Question 105 pts
Peter Senen Company provided the following data for the current year:
 
                Sales                                                      P7,500,000
                Cost of goods sold                           ( 4,000,000)
                Expenses paid                                   ( 1,100,000)
                Depreciation                                      (     400,000)
                Net Income                                        P2,000,000
 
Increase in accounts receivable                 P500,000
Decrease in inventory                                  1,000,000
Decrease in accounts payable                      600,000
 
 
 
What is the net cash provided (used) by operating activities?

b. P2,400,000

c. P2,300,000

a. P2,000,000

d. P1,700,000

Question 115 pts
. JYD Company provided the following information for the year 2020:
 

 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 loan proceeds for purchase of additional inventory P150,000,
payment of cash dividend P300,000 and increase in the cash balance P100,000
 
What amount should be reported as net cash used in investing activities in the
statement of cash flows?

b. (P2,200,000)

c. (P400,000)

a. (P1,200,000)

d. (P750,000)

Question 125 pts
. JYD Company reported net income of P3,000,000 for the current year. Changes
occurred in certain accounts as follows:
                                Equipment                                                      P250,000 increase
                                Accumulated depreciation                           400,000 increase
                                Note payable                                                     300,000 increase
 

 During the year, the entity sold equipment costing P250,000 with accumulated
depreciation of P120,000 for a gain of P50,000.
 In December of the current year, the entity purchased equipment costing
P500,000 with P200,000 cash and a 12% note payable of P300,000.

 
In the statement of cash flows, what amount should be reported as net cash used in
investing activities?

b. (P120,000)

a. (P20,000)
d. (P350,000)

c. (P220,000)
Question 135 pts
JYD Company reported net income of P3,000,000 for the current year. Changes
occurred in certain accounts as follows:
                                Equipment                                                      P250,000 increase
                                Accumulated depreciation                           400,000 increase
                                Note payable                                                     300,000 increase
 

 During the year, the entity sold equipment costing P250,000 with accumulated
depreciation of P120,000 for a gain of P50,000.
 In December of the current year, the entity purchased equipment costing
P500,000 with P200,000 cash and a 12% note payable of P300,000.

 
In the statement of cash flows, what amount should be reported as net cash used in
investing activities?
 
 
In the statement of cash flows, what amount should be reported as net cash
provided in operating activities?

d. P3,570,000

c. P3,520,000

b. P3,470,000

a. P3,400,000

Question 145 pts
St. Peter Company provided the following data:
                                                                2020                                       2019
Cash                                                      350,000                 150,000
Accounts receivable, ney             840,000                 580,000
Merchandise Inventory                660,000                 420,000
Prepaid Expenses                              50,000                                 100,000
Long term investment                     80,000                                    -
Property, Plant and Equipment 1,130,000                             600,000
Accumulated depreciation              110,000                                50,000
Accounts payable                               530,000                              440,000
Accrued expenses                              140,000                              130,000
Dividends payable                                70,000                                  -
Note payable-long term                                 500,000                                  -
Share Capital                                      1,200,000                             900,000
Retained earnings                           560,000                 330,000
Net credit sales                                 6,400,000                             4,000,000
Cost of goods sold                           5,000,000                             3,200,000
Expenses                                             1,000,000                             520,000
Net income                                           400,000                              280,000
All accounts receivable and accounts payable relate to trade merchandise. Accounts
payable are recorded net and always paid to take all of the discounts allowed.
The allowance for doubtful accounts at the end of 2020 was the same as at the end
of 2019. No receivables were charged against the allowance during 2020.
The proceeds from the note payable were used to finance a new store building.
Share capital was sold to provide additional working capital.
The net cash provided (used) by operating activities is

d. P110,000

c. P200,000 (hula hhehe)

a. P400,000

b. P100,000

Question 155 pts
St. Peter Company provided the following data:
                                                                2020                                       2019
Cash                                                      350,000                 150,000
Accounts receivable, ney             840,000                 580,000
Merchandise Inventory                660,000                 420,000
Prepaid Expenses                              50,000                                 100,000
Long term investment                     80,000                                    -
Property, Plant and Equipment 1,130,000                             600,000
Accumulated depreciation              110,000                                50,000
Accounts payable                               530,000                              440,000
Accrued expenses                              140,000                              130,000
Dividends payable                                70,000                                  -
Note payable-long term                                 500,000                                  -
Share Capital                                      1,200,000                             900,000
Retained earnings                           560,000                 330,000
Net credit sales                                 6,400,000                             4,000,000
Cost of goods sold                           5,000,000                             3,200,000
Expenses                                             1,000,000                             520,000
Net income                                           400,000                              280,000
 
All accounts receivable and accounts payable relate to trade merchandise. Accounts
payable are recorded net and always paid to take all of the discounts allowed.
 
The allowance for doubtful accounts at the end of 2020 was the same as at the end
of 2019. No receivables were charged against the allowance during 2020.
 
The proceeds from the note payable were used to finance a new store building.
Share capital was sold to provide additional working capital.
The net cash provided (used) by financing activities is

b. P300,000

a. P140,000

d. P700,000

c. P500,000 (hula hehe)

Question 165 pts
St. Peter Company provided the following data:
                                                                2020                                       2019
Cash                                                      350,000                 150,000
Accounts receivable, ney             840,000                 580,000
Merchandise Inventory                660,000                 420,000
Prepaid Expenses                              50,000                                 100,000
Long term investment                     80,000                                    -
Property, Plant and Equipment 1,130,000                             600,000
Accumulated depreciation              110,000                                50,000
Accounts payable                               530,000                              440,000
Accrued expenses                              140,000                              130,000
Dividends payable                                70,000                                  -
Note payable-long term                                 500,000                                  -
Share Capital                                      1,200,000                             900,000
Retained earnings                           560,000                 330,000
Net credit sales                                 6,400,000                             4,000,000
Cost of goods sold                           5,000,000                             3,200,000
Expenses                                             1,000,000                             520,000
Net income                                           400,000                              280,000
 
All accounts receivable and accounts payable relate to trade merchandise. Accounts
payable are recorded net and always paid to take all of the discounts allowed.
 
The allowance for doubtful accounts at the end of 2020 was the same as at the end
of 2019. No receivables were charged against the allowance during 2020.
 
The proceeds from the note payable were used to finance a new store building.
Share capital was sold to provide additional working capital.
. The net cash provided (used) by investing activities is
b. P530,000

a. P80,000

d. P660,000
c. P610,000