Reference no: EM132864422
Problem 1 - Athena Comapny reorted net income of P5,000,000 and provided the following information for the current year:
Amortization of patent P45,000
Depreciation on plant assets 1,650,000
Long-term debt:
Bond discount amortization 65,000
Interest paid 900,000
Income tax:
Income tax expense 300,000
Increase in deferred tax liability 25,000
Purchased of additional financial asset at FVPL 1,000,000
Unrealized loss on financial asset help for trading 100,000
Unrealized loss on financial asset at FVOCI 400,000
Required -
1. Compute the interest expense for the current year.
2. Compute the income tax paid for the current year.
3. Compute the net cash provided by operating activities.
Problem 2 - Car Company reported net income of P5,000,000 for the current year and shown the following changes in several accounts:
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 at a gain of P50,000.
In December, the entity purchased equipment costing P500,000 with P200,000 cash and 12% note payable of P300,000.
Required -
1. Compute for the depreciation expense for the current period?
2. Compute for net cash provided or used by operating activities?
3. Compute for the net cash provided or used by investing activities?
Problem 3 - Nile Company provided the following information at the end of each year:
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2020
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2019
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|
Borrowings
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P2,500,000
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P800,000
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Share capital
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3,500,000
|
2,000,000
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Retained earnings
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950,000
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750,000
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Borrowings of P300,000 were paid during 2020 and a new borrowing include P200,000 vendor financing arising on the acquisition of property.
The movement in retained earnings comprised profit for 2020 of P900,000 and net of cash dividend paid to the shareholders.
The movement in share capital arose from issuance of share capital for cash during the year.
Required -
1. Compute for the cash acquired from new long-term borrowings.
2. Compute for the cash dividend declared and paid during the current year.
3. Compute the net cash provided or used by financing activities.