Reference no: EM132867293

Question - 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 Car

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 the depreciation expense for the current period.

2. Compute net cash provided or used by operating activities.

3. Compute the net cash provided or used by investing activities.