Reference no: EM132818369

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.
  

Problem 1: Compute for the depreciation expense for the current period

Problem 2: Compute for net cash provided or used by operating activities

Problem 3: Compute for the net cash provided or used by investing activities