Reference no: EM132543548

Question 1: Ama Company had the following balances on December 31, 2019:

Cash in checking account 350,000

Cash in money market account 250,000

Treasury bill, purchased 12/01/18, maturing 2/28/19 800,000

Treasury bill purchased 3/01/18, maturing 2/28/19 500,000

What amount should Ama report as cash and cash equivalents on its December 31, 2019 balance sheet?

Question 2: BatRob a firm established by Batman and Robin, has provided the following 2019 current account balance for the preparation of its annual cash flow statement:

                                           January 1                           December 31

Accounts receivable                 P 115,000                      P 145,000

Allowance for bad debts                   4,000                          5,000

Prepaid rent expense                      62,000                         41,000

Accounts payable                           97,000                       112,000

BatRob's 2019 net income is 750,000. Net cash provided by operating activities should be ____________.

Question 3:  Net cash flow from operating activities amounted to 65,000. Depreciation a foreign currency gain were 20,000 and 9,000, respectively. Changes in current items were the following:

Increase in accounts receivable 6,000

Decrease in inventory 10,000

Increase in non-trade notes receivable 8,000

Decrease in prepaid expenses 5,000

Increase in accounts payable 11,000

Decrease in income tax payable 9,000

Increase in dividends payable 15,000

How much was the net income?