1) Wowowee Corporation 2nd year in business posted a net income of 70,000,000 for the year ended December 31, 2012.
The following data are extracted from the books of accounts
Depreciation
32,000,000
Decrease in accounts payable
3,400,000
Increase in prepaid expenses
1,500,000
Forex Loss
22,400,000
Dividends paid
25,500,000
The Company should report as cash provided by operations in its cash flow statement for the year ended December 31,
2012 at
A. 100,100,000
B. 119,500,000
C. 100,400,000
D. 126,300,000
Use the fol
following
lowing informatio
information
n for the next two (2) questions:
The statement of financial position data of Davao Company at the end of 2020 and 2019 follow:
Cash
Accounts receivable (net)
Inventory
Prepaid expenses
Buildings and equipment
Accumulated depreciation—buildings and equipment
Land
Accounts payable
Accrued expenses
Notes payable—bank, long-term
Mortgage payable
Share capital, P10 par
Retained earnings (deficit)
2020
P 125,000
2019
P 175,000
Increase (Dec
(Decrease)
rease)
(P50,000)
300,000
350,000
225,000
225,000
75,000
125,000
50,000
125,000
( 75,000)
450,000
(90,000)
375,000
(40,000)
75,000
50,000
450,000
200,000
250,000
P1,635,000
P1,285,000
P350,000
P 340,000
60,000
P 275,000
90,000
P65,000
( 30,000)
200,000
(200,000)
150,000
1,045,000
795,000
250,000
40,000
P1,635,000
(75,000)
P1,285,000
115,000
P350,000
150,000
Land was acquired for P250,000 in exchange for ordinary shares, par P250,000, during the year; all equipment purchased
was for cash. Equipment costing P25,000 was sold for P10,000; book value of the equipment was P20,000 and the loss
was reported as an ordinary item in net income. Cash dividends of P50,000 were charged to retained earnings and paid
during the year; the transfer of net income to retained earnings was the only other entry in the Retained Earnings account.
Based of the foregoing information, compute for the following.
1) Net cash provided by operating activities.
B. 130,000
A. 120,000
C.
140,000
D.
165,000
2) Net cash provided by (used in) financing activities.
A. 150,000 provided
B. 350,000 provided
C.
100,000 used
D.
250,000 used
1) Mimzee Corporation had net income for 2020 of P3,000,000. Additional information is as follows:
Depreciation of plant assets
Amortization of intangibles
Increase in accounts receivable
Increase in accounts payable
Mimzee’s net cash provided by operating activities for 2020 was
A. 4,560,000
B. 4,440,000
C. 4,320,000
D.
1,200,000
240,000
420,000
540,000
1,680,000
2) During 2020, Greta Company earned net income of P192,000 which included depreciation expense of P39,000. In
addition, the Company experienced the following changes in the account balances listed below:
Decrease
Decreasess
Increases
Accounts receivable
6,000
Accounts payable
22,500
Prepaid expenses
16,500
Inventory
18,000
Accrued liabilities
12,000
Based upon this information what amount will be shown for net cash provided by operating activities for 2020?
A. 246,000
B. 232,500
C. 142,500
D. 133,500
3) The net income for the year ended December 31, 2020, for Oliva Company was P1,200,000. Additional information is as
follows:
Depreciation on plant assets
600,000
Amortization of leasehold improvement
340,000
Provision for doubtful accounts on short term receivable
120,000
Provision for doubtful accounts on lo ng term receivable
100,000
Interest paid on short term borrowings
80,000
Interest paid on long term borrowings
60,000
Based solely on the information give above, what should be the net cash provided by operating activities in the
statement of cash flows for the year ended December 31, 2020?
A. 2,260,000
B. 2,360,000
C. 2,340,000
D. 2,500,000
4) Net cash flow from operating activities for 2020 for Spencer Corporation was P300,000. The following items are
reported on the financial statements for 2020:
Cash dividends paid on ordinary shares
20,000
Depreciation and amortization
12,000
Increase in accounts receivables
24,000
Based on the information above, Spencer’s net income for 2020 was
B. 296,000
C. 264,000
A. 312,000
D.
256,000
5) The following information on selected cash transactions for 2020 has been provided by Mancuso Company:
Proceeds from sale of land
Proceeds from long-term borrowings
Purchases of plant assets
Purchases of inventories
Proceeds from sale of Mancuso ordinary shares
160,000
400,000
144,000
680,000
240,000
What is the cash provided or used by investing activities for the year ended December 31, 2020 as a result of the above
information?
A. 16,000
B. 256,000
C. 160,000
D. 800,000
6) Selected information from Dinkel Company’s 2020 accounting records is as follows:
Proceeds from issuance of ordinary shares
Proceeds from issuance of bonds
Cash dividends on ordinary shares paid
Cash dividends on preference shares paid
Purchase of treasury shares
Sale of ordinary shares to officers and employees not included above
400,000
1,200,000
160,000
60,000
120,000
100,000
Dinkel’s statement of cash flows for the year ended December 31, 2020, would show net cash provided (used) by
financing activities of
B. 220,000 used
C. 160,000 provided
D. 1,360,000 provided
A. 60,000 provided
7) During 2020, Stout Inc. had the following activities related to its financial operations:
Carrying value of convertible preference shares in Stout, converted into ordinary shares of Stout
Payment in 2020 of cash dividend declared in 2019 to preference shareholders
Payment for the early retirement of long-term bonds payable (carrying amount P2,220,000)
Proceeds from the sale of treasury shares (on books at cost of P258,000)
360,000
186,000
2,250,000
300,000
The amount of net cash used in financial activities to appear in Stout’s statement of cash flows for 2020 should be
A. 1,590,000
B. 1,776,000
C. 2,136,000
D. 2,148,000
Use the fol
following
lowing informatio
information
n for the next two (2) questions:
Napier Company provided the following information on selected transactions during 2020:
Purchase of land by issuing bonds
Proceeds from issuing bonds
Purchases of inventory
Purchases of treasury shares
Loans made to affiliated corporations
Dividends paid to preference shareholders
250,000
500,000
950,000
150,000
350,000
400,000
Proceeds from sale of equipment
50,000
8) The net cash provided (used) by investing activities during 2020 is
A. 50,000 provided
B. 300,000 used
C. 550,000 used
D.
1,250,000 used
9) The net cash provided by financing activities during 2020 is
A. 550,000 provided
B. 650,000 provided
D.
900,000 provided
C.
800,000 provided
Use the fol
following
lowing informatio
information
n for the next two (2) questions:
Smiley Corporation’s transactions for the year ended December 31, 2020 included the following:
 Purchased real estate for P550,000 cash which was borrowed from a bank.
 Sold available-for-sale investments for P500,000.
 Paid dividends of P600,000.
 Issued 500 ordinary shares for P250,000.
 Purchased machinery and equipment for P125,000 cash.
 Paid P450,000 toward a bank loan.
 Reduced accounts receivable by P100,000.
 Increased accounts payable by P200,000.
10) Smiley’s net cash used in investing activities for 2020 was
A. 675,000
B. 375,000
C.
175,000
D.
50,000
11) Smiley’s net cash used in financing activities for 2020 was
A. 50,000
B. 250,000
C.
450,000
D.
500,000
12) Stoned Company reported sales on an accrual basis of P109,000. If accounts receivable increased P31,000 and the
allowance for doubtful accounts increased P10,000 after a write off of P3,000, what amount of collection does Stoned
have?
A. 75,000
B. 65,000
C. 85,000
D. 91,000
13) BCAA Company prepares its statement of cash flows using the direct method for operating activities. For the year ended
December 31, 2020, BCAA Company reports the following activities:
Sales on account
1,300,000
Cash sales
740,000
Decrease in accounts receivable
610,000
Increase in accounts payable
72,000
Increase in inventory
48,000
Cost of goods sold
975,000
What is the amount of cash collections from customers reported by BCAA for the year ended December 31, 2020?
B. 1,910,000
C. 2,650,000
D. 1,430,000
A. 2,040,000
14) The following information was taken from the 2020 financial statements of Jenny Corporation:
Inventory – January 1, 2020
Inventory – December 31, 2020
Accounts payable – January 1, 2020
Accounts payable – December 31, 2020
Sales
Cost of goods sold
90,000
120,000
75,000
120,000
600,000
450,000
If the direct method is used in the 2020 statement of cash flows, what amount should Jenny report as cash payments to
suppliers?
A. 435,000
B. 465,000
C. 495,000
D. 525,000
Use the fol
following
lowing informatio
information
n for the next two (2) questions:
Bubbles Corporation reported net income of P420,000 for the current period. Changes occurred in several statement of
financial position accounts as follows:
Equipment
35,000 Increase
Accumulated depreciation
56,000 Increase
Notes payable
42,000 Increase
Additional information:



During the year, Bubbles sold equipment costing P35,000, with accumulated depreciation of P16,800, for a gain of
P7,000
In December of the current year, Bubbles purchased equipment costing P70,000 with P28,000 cash and a 12% note
payable of P42,000.
Depreciation expense for the year was P72,800
1) In Bubbles’ statement of cash flows, net cash provided by operating activities should be
A. 476,000
B. 485,800
C. 492,800
D.
499,800
2) In Bubbles current period statement of cash flows, net cash flows used in investing activities should be
A. 49,000
B. 30,800
C. 16,800
D. 2,800
3) The following information was taken from the 2022 financial statements of Winchester Corporation:
Accounts receivable, January 1, 2022
Accounts receivable, December 31, 2022
Sales on account and cash sales
Uncollectible accounts
108,000
152,000
2,190,000
5,000
No accounts were written off or recovered during the year. If Winchester prepares a statement of cash flows using the
direct method, what amount should be reported as collected from customers in 2022?
B. 2,234,000
C. 2,146,000
D. 2,141,000
A. 2,239,000
4) The following information is available from Ram Corp.’s accounting records for the year ended December 31, 2022:
Cash paid to suppliers and employee
1,020,000
Cash dividends paid
60,000
Cash received from customers
1,740,000
Rent received
20,000
Taxes paid
220,000
Net cash flow provided by operating activities for 2022 was
B. 460,000
C.
A. 440,000
500,000
D.
520,000
5) Stiggins Corporation had the following account balances for 2022:
Decembe
Decemberr 31
67,200
24,600
84,000
Accounts Payable
Prepaid Rent Expense
Accounts Receivable (net)
January 1
58,200
37,200
66,600
Stiggins’ 2022 profit is P450,000. What amount should Stiggins include as net cash provided by operating activities in its
2022 statement of cash flows?
A. 436,200
B. 445,200
C. 453,600
D. 454,200
Use the fol
following
lowing informatio
information
n for the next two (2) questions:
Broly Company uses the direct method to prepare its statement of cash flows. The company had the following cash flows
during the current year:
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 another company
220,000
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
6) The net cash provided/used in operating activities is
B. 40,000 provided
A. 60,000 provided
C.
30,000 provided
D.
20,000 provided
7) The net cash provided by (used in) investing activities is
A. 220,000 provided
B. 140,000 provided
C.
60,000 provided
D.
80,000 used
8) The net cash provided by (used in) financing activities is
2) The following information is available from Sand Corp.’s accounting records for the year ended December 31, 2009:
Cash received from customers
Rent received
Cash paid to suppliers and employees
Taxes paid
Cash dividends paid
P870,000
10,000
510,000
110,000
30,000
Net cash flow provided by operations for 2008 was
A. 260,000
B. 250,000
C.
230,000
D.
220,000
Solution:
Cash received from customers ............... P870,000
Add(Deduct)
Rent received ......................................... 10,000
Cash paid to suppliers and employees .. (510,000)
Taxes paid ............................................. (110,000)
***The answer is 260,000. Dividend payment is not included because it is a SHE item and therefore included under financing
activities.
3) Mademoiselle Co. has provided the following 2009 current account balances for the preparation of the annual statement
of cash flows:
ACCOUNTS .................. January 1 ........ December 31
Accounts receivable ...... P11,500 .......... P14,500
Allowance for U/A .......... 400 .............. 500
Prepaid rent expense .... 6,200 .......... 4,100
Accounts payable ........... 9,700 .......... 11,200
Mademoiselle’s 2009 net income is P75,000. Net cash provided by operating activities in the statement of cash flows
should be
B. 72,700
C. 74,300
D. 75,500
A. 75,700
Net Income...................................................................75,000
Add(Deduct) Changes in Working Capital Accounts:
Increase in Accounts Receivable..................................(3,000)
Increase in Allowance for Uncollectible Accounts..............100
Decrease in Prepaid Rent..............................................2,100
Increase in Accounts Payable........................................1,500
Net Cash from Operating Activities is...........................75,700
The increase in AR is deducted from net income because it indicates that cash collected is less than sales revenue. The
increase in the allowance account is added to net income because it reflects an expense (bad debt expense) which was not
a cash payment. The decrease in prepaid rent is added because it too reflects an expense (rent expense) which was not a
cash payment (it was an allocation of previously recorded prepaid rent). Finally, the increase in AP is added because it also
represents an expense (cost of goods sold) which was not yet paid.
4) Romantic Corp.’s transactions for the year ended December 31, 2009, included the following:
Purchased real estate for P550,000 cash which was borrowed from a bank.
Sold available-for-sale investment securities for P500,000.
Paid dividends of P600,000.
Issued 500 shares of common stock for P250,000.
Purchased machinery and equipment for P125,000 cash.
Paid P450,000 toward a bank loan.
Romantic’s net cash used in investing activities for 2009 was
B. 375,000
C.
A. 175,000
675,000
D.
50,000
Purchase of real estate...................................(550,000)
Sale of investment securities...........................500,000
Purchase of machinery and equipment...........(125,000)
Total cash used in investing activities...............175,000
The bank borrowing (P550,000), dividend payment (P600,000), issuance of stock (P250,000), and bank loan payment
(P450,000) are financing activities.
5) Matatag Corp.’s transactions for the year ended December 31, 2009, included the following:
* Paid P450,000 toward a bank loan.
* Issued 500 shares of common stock for P250,000.
* Purchased machinery and equipment for P125,000 cash.
* Purchased real estate for P425,000 cash which was borrowed from a majority stockholder.
* Sold available-for-sale investment securities for P325,000.
* Paid dividends of P300,000.
Matatag’s net cash used in financing activities for 2009 was
A. 500,000
B. 1,350,000
C.
75,000
D.
750,000
Payments for bank loans..............................................(450,000)
Issuance of 500 shares of common stock......................250,000
Dividends paid this year................................................(300,000)
Advances from Stockholder (used to buy real estate)....425,000
Net cash used in financing activities is.............................75,000
6) In 2010, a tornado completely destroyed a building belonging to Hollyfield Corp. The building cost P100,000 and had
depreciated value of P48,000 at the time of the loss. Hollyfield received a cash settlement from the insurance company
and reported an extraordinary loss of P21,000. In Hollyfield’s 2010 cash flow statement, the net change reported in the
cash flows from investing activities section should be a
A. 10,000 increase
B. 21,000 decrease
C. 52,000 decrease
D. 31,000 increase
Building Cost...............................................100,000
Accumulated Depreciation.............................48,000
Net book value.............................................52,000
Extraordinary loss reported.........................21,000
Net cash flows from investing activities is 31,000.
7) La0 Tze Co. had net cash provided by operating activities of P351,000; net cash used by investing activities of
P420,000; and cash provided by financing activities of P250,000. La0 Tze’s cash balance was P27,000 on January 1.
During the year, there was a sale of land that resulted in a gain of P25,000 and proceeds of P40,000 were received from
the sale. What was La0 Tze’s cash balance at the end of the year?
B.
C.
D.
A. 208,000
Answer: P208,000
To calculate the cash balance at the end of the year, you should combine the effects of the changes in operating, investing,
and
financing
activities,
and
add
the
beginning
cash
balance.
Net
Net
Cash
Cash
provided
used
from
from
Operating
investing
Activities.........P351,000
activities...............(P420,000)
Net
cash
provided
by
financing
activities..............P250,000
---------------------------------------------------------------------------Net
change
in
Add:
Beginning
cash
---------------------------------------------------------------------------Ending Cash Balance.............................................P208,000
cash...............................................P181,000
balance..................................P27,000
8) Marikitka Corporation accounting records show the following numbers below at the end of each year:
2012
2011
Borrowings
3,000,000
800,000
Share capital
4,000,000
2,000,000
Retained earnings
1,000,000
800,000
Old debts of 500,000 were repaid during 2012 and new borrowings include 300,000 vendor financing arising on the
acquisition of a property. The movement in share capital arose from issuance of share capital for cash during the year.
There was no dividend declared at the beginning and end of the current year. Net change in retained earnings
comprises profit for 2012 of 900,000, net of dividend of 700,000.
How much is the financing net cash inflows that should be reported in the 2012 Cash Flow statement?
A. 3,900,000
B. 3,200,000
C. 3,400,000
D. 4,100,000
9) Heidi uses the direct method to prepare its cash flow statement. Pertinent account balances are:
2009
2008
Prepaid interest expense
200,000
50,000
Property, plant and equipment
5,000,000
4,500,000
Unamortized bond discount
250,000
300,000
Selling expenses
7,200,000
8,600,000
General and administrative expenses
6,850,000
7,565,000
Interest expense
800,000
150,000
Income tax expense
1,000,000
3,000,000
Allowance for uncollectible accounts
65,000
55,000
Accumulated depreciation
900,000
750,000
Income tax payable
1,100,000
1,300,000
Deferred income tax liability
200,000
400,000
Accrued interest payable
300,000
500,000
Heidi purchased P500,000 in equipment during 2009. Heidi allocated one-third of its depreciation to selling and the
remainder to administrative. What amount should Heidi report in its 2009 cash flow statement as cash paid for interest?
A. 1,100,000
B. 1,150,000
C. 1,200,000
D. 750,000
Interest expense
Add: Prepaid interest, end.
Interest payable, beg.
Total
Less: Prepaid interest, beg.
Interest payable, end.
Amortization of bond disc.
Interest paid
800,000
200,000
500,000
700,000
1,500,000
50,000
300,000
50,000
400,000
1,100,000
1) The following information relates to the activities of I Miss You Company. Income tax may be ignored.
Net cash flows form operating activities
Decrease in trade payables
Decrease in inventory
Increase in trade receivables
Cash proceeds from sale of plant (book value of P25,000)
Increase in allowance for doubtful debts
What is the profit for the period?
A. 698,100
B.
730,100
C.
744,100
D.
767,100
720,000
23,000
11,500
24,600
14,000
1,000
ANSWE
ANSWER:
R: D
Net income
Decrease in trade payables
Decrease in inventory
Increase in trade receivables
Loss on sale 25,000 – 1
14,000
4,000
Increase in allowance for doubtful debts
Net cash flows form operating activities
squeeze
744,100
(23,000)
11,500
(24,600)
11,000
1,000
720,000
2) The following were taken from the incomplete financial data of Sam Company, a calendar year merchandising
corporation:
Decembe
Decemberr 31, 2005
December 31, 2006
Trade accounts receivable
840,000
780,000
Inventory
1,500,000
1,000,000
Accounts payable
950,000
980,000
Accrued gen. & admin. expense
130,000
170,000
Prepaid selling expense
150,000
130,000
PPE, net
1,650,000
1,420,000
Patent
425,000
300,000
Investment in Associate
550,000
720,000
The following additional information were made available: cash payments for selling and administrative expense was
900,000, payments for purchases, net of discounts of 70,000 was 1,530,000. Equipment with a book value of 200,000
was sold for 250,000. There were no acquisitions of PPE and other transactions affecting net income during the period
There no acquisitions of investment during the year 2006.
If the company reported a net income of 270,000, what is the amount of collections on trade receivables in 2006?
A. 2,425,000
B. 2,470,000
C. 3,285,000
D. 3,485,000
Net income
Gain on sale of equipment
Income from investment in associates
Depreciation
Amortization of patent
Selling and Admin. expenses
Gross profit
270,000
( 50,000)
( 170,000)
30,000
125,000
960,000
1,165,000
Sales
Cost of sales
Gross profit
3,225,000
2,060,000
1,165,000
Cost of sales:
Beg. Inv.
Purchases
Purchase discounts
Ending inventory
COS
Accounts payable
Debit
Credit
1,530,000
950,000
70,000
1,630,000
980,000
Cash paid – Selling & Admin
PB
AE
AB
AB
1,500,000
1,630,000
( 70,000)
(1,000,000)
2,060,000
Acc
Accounts
ounts Receivable
Debit
Credit
840,000
3,825,000
3,200,000
780,000
900,000
150,000
170,000
(130,000)
(130,000)
Selling & Admin (accrual)
960,000
Property, plant & equipme
equipment
nt
Debit
Credit
1,650,000
200,000 sold
30,000 depreciation
1,420,000
3) The following information is available from the financial statements of Wonder Corporation for the year ended December
31, 2022:
Net income
396,000
Depreciation expense
102,000
Decrease in accounts receivable
126,000
Increase in inventories
90,000
Increase in accounts payable
24,000
Payment of dividends
54,000
Purchase of investment in financial asset measured at fair value through other comprehensive income
22,000
Decease in income taxes payable
16,000
What is Wonder Corporation’s net cash flow from operating activities?
A. 440,000
B. 466,000
C. 520,000
D.
ANSWE
ANSWER:
R: D
Net income
Depreciation expense
Decrease in accounts receivable
Increase in inventories
Increase in accounts payable
Decease in income taxes payable
Total cash provided by operating activities
542,000
396,000
102,000
126,000
(90,000)
24,000
(16,000)
542,000
Use the fol
following
lowing informatio
information
n for the next two (2) questions:
 f
1) The following were taken from the incomplete financial data of Sam Company, a calendar year merchandising
corporation:
Decembe
Decemberr 31, 2018
December 31, 2019
Trade accounts receivable
840,000
780,000
Inventory
1,500,000
1,000,000
Accounts payable
950,000
980,000
Accrued general and administrative expenses
130,000
170,000
Prepaid selling expense
150,000
130,000
Property, plant and equipment, net
1,650,000
1,420,000
Patent
425,000
300,000
Investment in associate
550,000
720,000
The following additional information were made available: cash payments for selling and administrative expenses was
P900,000, payments for purchases, net of cash discount of P70,000 was P1,530,000. Equipment with a book value of
P200,000 was sold for P250,000. There were no acquisitions of property, plant and equipment and other transactions
affecting net income during the period. There were no acquisitions of investment during 2019. If the company reported a
net income before tax of P270,000, what is the amount of collections on trade receivables in 2019?
B. 2,470,000
C. 3,285,000
D. 3,485,000
A. 3,255,000
ANSWE
ANSWER:
R: C
Sales
Cost of sale 1,500,000 + 1,
1,530,000
530,000 – 1,0
1,000,000
00,000 + 9
980,000
80,000 – 950,000
Gross profit
Gain on sale of PPE
Share in profit of associate 720,000 – 550,000
Amortization of patent 425,000 – 300,
300,000
000
Depreciation of PPE 1,650,000 – 1,42
1,420,000
0,000 – 200,
200,000
000
Selling expense and admin 900,000 – 130,000 + 1
170,000
70,000 + 15
150,000
0,000 – 130,0
130,000
00
Net income
squeeze
3,225,000
(2,060,000)
1,165,000
50,000
170,000
(125,000)
(30,000)
(960,000)
270,000
Beginning AR
Sales
Collection
Ending AR
840,000
3,225,000
3,285,000
780,000
1) Avedon Company provided the following information for the current year:
Sales
Cost of goods sold
Beginning inventory
Purchased
Goods available for sale
Ending inventory
Gross income
Gain on sale of equipment
Total income
Operating expenses:
Distribution cost
Administrative expenses
Income before tax
Income tax expense
Net income
 Accounts receivable increased by P400,000 during the year.
 Prepaid expenses decreased P150,000 during the year.
 Accounts payable decreased P200,000 during the year.
 Notes payable-bank increased P400,000 during the year.
 Accrue expenses increased P300,000 during the year.
 Taxes payable increased P60,000 during the year.
 Administrative expenses included depreciation expense of P120,000.
What is the net cash provided by operating activities?
A 420,000
B. 720,000
.
C.
620,000
6,000,000
1,500,000
4,200,000
5,700,000
(1,300,000)
600,000
400,000
D.
4,400,000
1,600,000
100,000
1,700,000
1,000,000
700,000
210,000
490,000
820,000
2) Timothy Company provided the following transactions for the year ended December 31, 2020:
 Acquired 50% of Carlo Company’s share for P1,800,000 cash which was borrowed from a bank.
 Issued 5,000 shares for land having a fair value of P3,200,000.
 Issued 5,000 11% debenture bonds with P1,000 face amount, due 2025, for P3,920,000 cash.
 Purchased a patent for P2,200,000 cash.
 Paid P1,200,000 toward a bank loan.
 Sold financial asset at FVOCI for P800,000.
 Had net increase in advances from customer of P880,000.
What amount should be reported as net cash from financing activities?
A 4,520,000
B. 5,400,000
C. 2,720,000
.
D.
6,600,000
1) Bubbles Corporation reported net income of P420,000 for the current period. Changes occurred in several statement of
financial position accounts as follows:
Equipment
35,000 Increase
Accumulated depreciation
56,000 Increase
Notes payable
42,000 Increase
Additional information:
 During the year, Bubbles sold equipment costing P35,000, with accumulated depreciation of P16,800, for a gain of
P7,000
 In December of the current year, Bubbles purchased equipment costing P70,000 with P28,000 cash and a 12%
note payable of P42,000.
 Depreciation expense for the year was P72,800
In Bubbles current period statement of cash flows, net cash flows used in investing activities should be
A. 49,000
B. 30,800
C. 16,800
D. 2,800
2) Buffaloman Company had the following activities during the current period: