MEC 42- PRACTICE SET – CASH FLOW STATEMENT A. BLACKPINK Company uses the direct method to prepare its statement of cash flows. The company had the following cash flows during 2022: Cash receipts from the issuance of ordinary shares 400,000 Cash receipts from customers 200,000 Cash receipts from dividends on long-term investments 30,000 Cash receipts from repayment of loan made to 220,000 another entity Cash payments for wages and other operating expenses 120,000 Cash payments for insurance 10,000 Cash payments for dividends 20,000 Cash payments for taxes 40,000 Cash payment to purchase land 80,000 1. The net cash provided by (used in) operating activities is? 2. The net cash provided by (used in) investing activities is? 3. The net cash provided by (used in) financing activities is? B. JENCHULICHAENG Co. had the following information during 2022: Accounts receivable, January 1, 2022 Accounts receivable, December 31, 2022 Sales on account and cash sales Bad debts expense Accounts payable, January 1, 2022 Accounts payable, December 31, 2022 1,200 800 16,000 400 700 400 Cost of sales 8,000 Increase in inventory 1,800 Operating expenses on accrual basis 2,440 Increase in accrued payables for operating expenses 820 Decrease in prepaid operating expenses 780 Property, plant, and equipment, January 1, 2022 Property, plant, and equipment, December 31, 2022 3,600 5,400 Additional information: a. There were no write-offs of accounts receivable during the year. b. Equipment with an accumulated depreciation of ₱400 was sold during the year for ₱240 resulting to a gain on sale of ₱30. Requirements: Compute for the following: (a) cash receipts from customers, (b) cash payments to suppliers, (c) cash payments for operating expenses, and (d) cash payments for acquisition of property, plant, and equipment. C. BLINK Co. has the following information as of December 31, 2022: Jan. 1 Dec. 31 Accounts receivable 8,000 10,000 Allowance for bad debts (200) (500) Prepaid rent 1,920 1,600 Accounts payable 3,400 4,400 BLINK reported profit of ₱4,400 for the year, after depreciation expense of ₱100, gain on sale of equipment of ₱120, and restructuring and other provisions of ₱200. None of the provisions recognized during the period affected cash. Requirement: Compute for the cash flow from operating activities using the indirect method.