Reference no: EM132793776
Classification of Events on Statement of Cash Flows.
The following transactions pertain to the operations of Party Experts, an events planning entity owned by Ram Dionisio. The entity had the following transactions during the month:
a) Received a P180,OOO cash investment from the owner.
b) Provided P400, OOO services on account.
c) Incurred P220,OOO of operating expenses on account.
d) Collected P320,OOO cash from accounts receivable.
e) Allowed a P30,OOO cash withdrawal to the owner of the business.
f) Paid P160,OOO cash on accounts payable.
g) Performed services for P30,OOO cash.
h) Paid P12,OOO cash for expenses.
i) Sold old party equipment for P 10,000.
j) Paid P 3,000 for social media advertisement.
Required:
Problem 1. Identify/classify each of these transactions as a cash flow from operating activities (OA), investing activities (IA), or financing activities (FA). Transactions that do not affect the statement of cash flows should be identified as "n/a".
Problem 2. Prepare the statement of cash flows.
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