Reference no: EM132624912
Questions -
A. During the year 2020, the Belleview Company had generated total sales revenue of P1,000,000, of which P990,000 were collected during the year, including collections of P120,000 sales revenue made in 2019. The company purchased goods costing P600,000, paid P650,000 to merchandise suppliers including payment for goods purchases in 2019 of P80,000. Included in P180,000 operating expenses was depreciation of P35,000. Accrued operating expenses decreased by P12,000 from January 1, 2020 to December 31, 2020. The company paid interest of P6,000 and income taxes of P90,000 during 2020.
1. How much operating expenses were paid in cash during 2020?
2. How much was provided by/(used in) operating activities during 2020?
B. Roe Company provided the following account balances:
2019 2020
Machinery 2,500,000 3,200,000
Acc. Depreciation 1,020,000 1,200,000
Loss on sale of machinery ? 40,000
During 2020, the entity sold for P260,000 a machine with original cost of P400,000 and purchased an item of machinery.
What is the depreciation of machinery for 2020?
A. 180,000
B. 280,000
C. 240,000
D. 320,000
What is the cost of machinery purchases in 2020?
A. 960,000
B. 1,100,000
C. 700,000
D. 340,000
C. Oakwood Company provided the following data for the year:
Cash balance, beginning of the year 1,300,000
Cash flow from financing activities 1,000,000
Cash flow from operating activities 400,000
Cash flow from investing activities (1,500,000)
Total shareholders' equity, beginning of the year 2,000,000
What is the cash balance at the end of the year?
A. 1,600,000
B. 1,200,000
C. 1,700,000
D. 1,400,000
D. Sun Company provided the following data for the preparation of the statement of cash flows for the current year:
Increase in accounts receivable 300,000
Decrease in income tax payable 170,000
Depreciation 1,000,000
Net income 250,000
Gain on sale of equipment 440,000
Loss on sale of building 210,000
Using the indirect method, what should be reported as net cash flow from operating activities?
A. 880,000
B. 550,000
C. 700,000
D. 780,000
E. Alpha Company had the following activities during the year:
Acquired 2,000 shares of Maybel Corporation for P260,000.
Sold an investment in Rate Motors for P350,000 when the carrying amount was P330,000.
Acquired a P500,000, 4-year certificate of deposit from a bank.
During the year, interest of P37,500 was paid to Alpha.
Collected dividends of P12,000 on share investment.
What is the net cash used in investing activities?
A.360,500
B. 410,000
C. 372,500
D. 398,000