Prepare statement of cash flows using the indirect method

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Reference no: EM133037398

Question - Ramos Corporation's comparative balance sheets are presented below:

Ramos Corporation Comparative Balance Sheets Dec.11, 2019 2018

Cash P15,200 P17,700

Accounts Receivable 25,200 22,300

Investments 20,000 16,000

Equipment 60,000 70,000

Accumulated Depreciation- Equipment (14,000) (10,000)

Total 106,400 116,000

Liabilities and Stockholder's Equity Accounts Payable P14,600 P11,100

Bonds Payable 10,000 30,000

Common Stock 50,000 45,000

Retained Earnings 31,800 29,900

Total 106,400 116,000

Additional information:

1. Net income was P 18,300. Dividends declared and paid were P 16,400.

2. Equipment which cost P10,000 and had accumulated depreciation of P1,200 was sold for P3,300.

3. No noncash investing and financing activities occurred in 2019.

Required - Prepare a Statement of Cash Flows for 2019 using the indirect method.

Reference no: EM133037398

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