MINI TASK 3
Prepare the Statement of Cash Flows using the indirect method. After which, answer the following
questions.
A4HandTech Trading
Statement of Cash Flows
For the year ended December 31, 2020
Cash flows from Operating Activities:
Cash payments to suppliers of goods and services
Cash receipts from rendering services
Payment to income taxes
Payments for interest
Proceeds for dividends of investments
Net cash provided by operating activities
(₱ 75, 000)
160, 000
(40, 000)
(35, 000)
55, 000
Cash flows from Investing Activities:
Payments for acquisition of patent
Proceeds from sale of equipment
Payments for acquisition of equipment
Net cash provided by investing activities
(₱350, 000)
35, 000
(255, 000)
Cash flows from Financing Activities:
Payment to owners
Proceeds from bank loans
Proceeds from cash investments of owners
Payments of bank loans
Net cash provided by financing activities
Net increase (decrease) in Cash and Cash Equivalent
Cash at the beginning of the year
Cash and Cash Equivalents, Ending
₱65, 000
(₱570, 000)
(₱34, 000)
80, 000
350, 000
(8, 000)
₱388, 000
(₱117, 000)
1, 589, 000
₱1, 472, 000
1. How much is the net cash flow provided by the operating activities?
- Net cash provided by operating activities is amounted to ₱65, 000.
2. How much is the net cash flow provided by the investing activities?
- Net cash provided by investing activities is (₱570, 000)
3. How much is the net cash flows provided by the financing activities?
- Net cash provided by financing activities is ₱388, 000.
4. How much is the net increase/decrease in cash for the year?
- Net increase (decrease) in Cash and Cash Equivalent is (₱117, 000)
5. How much is the cash as at December 31, 2019?
- The cash at the beginning of the year which is December 31, 2020 is ₱1, 589, 000.