Reference no: EM133015827

Questions -

Q1. The following information are given from Santos Corporation.

Sales P800,000

Cost of goods sold P500,000

Other expense P50,000

Depreciation P60,000

Rent P100,000

Advertising P150,000

Salaries P200,000

Other income P30,000

Compute Gross profit and Net Profit (Please show your solutions).

Q2. A manufacturing company has net sales of P 50,000 cash expenses (including taxes) of P 35,000 and depreciation expense of P 5,000. If debtors decrease over the period by P 6,000, what is its cash from operations?

Q3. COMPUTE THE NET CASH PROVIDED (USED) FROM OPERATING ACTIVITIES

Credit and Collection Inc. uses the direct method to prepare its statement of cash flows. Charade had the following cash flows during 2011.

Cash receipts from issuance of ordinary shares P800,000

Cash receipts from customers 400,000

Cash receipts from dividends on long term investments 60,000

Cash receipts from repayment of loan made to another company 440,000

Cash payments for wages and other operating expenses 240,000

Cash payments for insurance 20,000

Cash payments for dividends 40,000

Cash payments for taxes 80,000

Cash payment to purchase land 160,000

What is the net cash provided (used) from operating activities?

Q4. The net income for the year ended December 31, 2020 for Prince Town Corp. was P 3,520,000. Additional data follow:

Purchase of plant assets P2,800,000

Depreciation of plant assets 1,480,000

Dividends declared on plant assets 970,000

Net decrease in non-cash current assets 290,000

Loss on sale of equipment 130,000

What should be the cash provided from operating activities in Prince Town Corp. statement of cash flows for the year ended December 31, 2020?