An entity reported the following changes in the statement of financial position accounts for the current year: Increase (Decrease) Cash and cash equivalents 1,100,000 Trading securities 2,500,000 Accounts receivable, net of allowance 1,000,000 Inventory (1,800,000) Property, plant and equipment 4,000,000 Accumulated depreciation 500,000 Patent (700,000) Investment in associate – 20% interest 400,000 6,000,000 Accounts payable 300,000 Note payable – bank (1,500,000) Bonds payable 3,000,000 Deferred tax liability 200,000 Share capital 3,000,000 Share premium 500,000 Treasury shares 500,000 Retained earnings 1,000,000 6,000,000 The net income for the current year was P6,000,000 Cash dividend paid at year-end amounted to P5,000,000 During the current year, the entity purchased trading securities for P3,000,000 cash and sold trading securities costing P1,000,000 for P1,400,000 cash. At year-end, the entity recognized unrealized gain of P500,000 from change in fair value. During the year, the entity sold equipment costing P1,000,000 with carrying amount of P600,000 for P500,000 cash. The entity purchased equipment for P2,000,000 cash during the year. The associate reported net income of P3,000,000 for the current year and paid cash dividend of P1,000,000 The entity issued bonds payable at face amount of P3,000,000 in exchange for land. During the year, the entity issued share capital with par value of P3,000,000 for P3,500,000 cash. The entity purchased treasury shares at a cost of P500,000 at year-end. What is the net cash provided by operating activities? 6,500,000 6,100,000 9,000,000 8,600,000 What is the net cash used in investing activities? 1,900,000 1,500,000 3,500,000 4,000,000 What is the net cash used in financing activities? 3,500,000 3,100,000 1,000,000 4,000,000

An entity reported the following changes in the statement of financial position accounts for the current year: Increase (Decrease) Cash and cash equivalents 1,100,000 Trading securities 2,500,000 Accounts receivable, net of allowance 1,000,000 Inventory (1,800,000) Property, plant and equipment 4,000,000 Accumulated depreciation 500,000 Patent (700,000) Investment in associate – 20% interest 400,000 6,000,000 Accounts payable 300,000 Note payable – bank (1,500,000) Bonds payable 3,000,000 Deferred tax liability 200,000 Share capital 3,000,000 Share premium 500,000 Treasury shares 500,000 Retained earnings 1,000,000 6,000,000 The net income for the current year was P6,000,000 Cash dividend paid at year-end amounted to P5,000,000 During the current year, the entity purchased trading securities for P3,000,000 cash and sold trading securities costing P1,000,000 for P1,400,000 cash. At year-end, the entity recognized unrealized gain of P500,000 from change in fair value. During the year, the entity sold equipment costing P1,000,000 with carrying amount of P600,000 for P500,000 cash. The entity purchased equipment for P2,000,000 cash during the year. The associate reported net income of P3,000,000 for the current year and paid cash dividend of P1,000,000 The entity issued bonds payable at face amount of P3,000,000 in exchange for land. During the year, the entity issued share capital with par value of P3,000,000 for P3,500,000 cash. The entity purchased treasury shares at a cost of P500,000 at year-end. What is the net cash provided by operating activities? 6,500,000 6,100,000 9,000,000 8,600,000 What is the net cash used in investing activities? 1,900,000 1,500,000 3,500,000 4,000,000 What is the net cash used in financing activities? 3,500,000 3,100,000 1,000,000 4,000,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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An entity reported the following changes in the statement of financial position accounts for the current year:

	Increase (Decrease)
Cash and cash equivalents	1,100,000
Trading securities	2,500,000
Accounts receivable, net of allowance	1,000,000
Inventory	(1,800,000)
Property, plant and equipment	4,000,000
Accumulated depreciation	500,000
Patent	(700,000)
Investment in associate – 20% interest	400,000
	6,000,000

Accounts payable	300,000
Note payable – bank	(1,500,000)
Bonds payable	3,000,000
Deferred tax liability	200,000
Share capital	3,000,000
Share premium	500,000
Treasury shares	500,000
Retained earnings	1,000,000
	6,000,000

The net income for the current year was P6,000,000
Cash dividend paid at year-end amounted to P5,000,000
During the current year, the entity purchased trading securities for P3,000,000 cash and sold trading securities costing P1,000,000 for P1,400,000 cash. At year-end, the entity recognized unrealized gain of P500,000 from change in fair value.
During the year, the entity sold equipment costing P1,000,000 with carrying amount of P600,000 for P500,000 cash.
The entity purchased equipment for P2,000,000 cash during the year.
The associate reported net income of P3,000,000 for the current year and paid cash dividend of P1,000,000
The entity issued bonds payable at face amount of P3,000,000 in exchange for land.
During the year, the entity issued share capital with par value of P3,000,000 for P3,500,000 cash.
The entity purchased treasury shares at a cost of P500,000 at year-end.

What is the net cash provided by operating activities?
6,500,000
6,100,000
9,000,000
8,600,000

What is the net cash used in investing activities?
1,900,000
1,500,000
3,500,000
4,000,000

What is the net cash used in financing activities?
3,500,000
3,100,000
1,000,000
4,000,000

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