What should be the net cash provided by operating activities

Reference no: EM132702433

Questions -

Q1. The net income for the year ended December 31, 2014 for Denver Company was P1,800,000. Additional information follows:

Depreciation on plant assets P900,000

Depreciation of leasehold improvements 510,000

Provision for doubtful account on short term receivables 180,000

Provision for doubtful account on long term receivables 150,000

Interest paid on short-term borrowings 120,000

Interest paid on long-term borrowings 90,000

Based on the information given, what should be the net cash provided by operating activities in the statement of cash flows for the year ended December 31, 2014?

Q2. Torque Company acquired a subsidiary. As part of the purchased agreement the subsidiary's shareholders authorized a P5,000,000 dividend, pre-acquisition, that is payable to the former shareholders (the vendor). The purchase consideration payable for the acquisition was reduced by the amount of the dividend. The dividend was paid after the date of acquisition. In the statement of cash flows, how should Torque Company present the payment of dividend?

Q3. In 2014, a typhoon completely destroyed a building belonging to Carrier Corporation. The building cost P2,500,000 and had accumulated depreciation of P1,200,000 at the time of the loss. Carrier received a cash settlement from the insurance company and reported a loss of P525,000. In Carrier's 2014 cash flow statement, how much would be the net changes that would be reported in the cash flows from investing activities section?

Q4. Grey Corporation provided the following information on selected transactions during 2014:Purchase of land by issuing bonds, P400,000; proceeds from issuing bonds, P800,000; purchase of inventories, PP1,520,000; purchases of treasury shares, P240,000; loans made to affiliated corporations, P560,000; dividends paid to preference shareholders, P160,000; proceeds from issuing preference share, P640,000; and proceeds from sale of equipment, P80,000. How much would be the net cash provided (used) by investing activities during 2014?

Reference no: EM132702433

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