42. What is the net cash provided by operating activities?a. P90,000b. P108,000c. P153,000d. P75,000 43. Using the data in no. 42, what is the net cash provided (used) by investing activities? a. (P108,000)b. P18,000c. P90,000d. (P132,000) 44. Using the data in no. 42, what is the net cash provided (used) by financing activities? a. P18,000b. P72,000c. (P90,000)d. (P162,000) Financial Statements of Melon Corporation for 2020 and 2019 are provided below:Statement of Financial Position12/31/19P72,00081,000180,00012/31/20P153,000CashAccounts Receivable135,000Merchandise InventoryProperty, plant, and equipment (net ofaccumulated depreciation of P120,000and P114,000 as of 12/31/20 and12/31/19 respectively)144,000108,000P540,000246,000P579,000Accounts payableIncome taxes payableBonds payableShare capitalRetained EarningsP66,000132,000135,00081,000P36,000147,000225,00081,000126,000P540,00090,000P579,000Income StatementFor the Year Ended December 31, 2020SalesCost of salesP3,150,0002,682,000468,000Gross profitSelling expensesAdministrative expensesIncome from operationsInterest expenseProfit before taxesP225,00072,000(297,000)171,000(27,000)144,000Income taxesProfit(36,000)P 108,000The following additional data were provided:1. Dividends for the year 2020 were P72,0002. During the year, equipment was sold for P90,000. This equipment cost P132,000 originally and had abook value of P108,000 at the time of sale. The loss on sale was incorrectly charged to the cost of sales.3. All depreciation expense is in the selling expense category.

The cash flow statement is one of the important financial statements of the business, which records…

42. What is the net cash provided by operating activities? a. P90,000 b. P108,000 c. P153,000 d. P75,000 43. Using the data in no. 42, what is the net cash provided (used) by investing activities? a. (P108,000) b. P18,000 c. P90,000 d. (P132,000) 44. Using the data in no. 42, what is the net cash provided (used) by financing activities? a. P18,000 b. P72,000 c. (P90,000) d. (P162,000)

42. What is the net cash provided by operating activities? a. P90,000 b. P108,000 c. P153,000 d. P75,000 43. Using the data in no. 42, what is the net cash provided (used) by investing activities? a. (P108,000) b. P18,000 c. P90,000 d. (P132,000) 44. Using the data in no. 42, what is the net cash provided (used) by financing activities? a. P18,000 b. P72,000 c. (P90,000) d. (P162,000)

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter7: Operating Assets

Section: Chapter Questions

Problem 24CE

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Question

42. What is the net cash provided by operating activities?

a. P90,000

b. P108,000

c. P153,000

d. P75,000

43. Using the data in no. 42, what is the net cash provided (used) by investing activities?

a. (P108,000)

b. P18,000

c. P90,000

d. (P132,000)

44. Using the data in no. 42, what is the net cash provided (used) by financing activities?

a. P18,000

b. P72,000

c. (P90,000)

d. (P162,000)

Financial Statements of Melon Corporation for 2020 and 2019 are provided below:
Statement of Financial Position
12/31/19
P72,000
81,000
180,000
12/31/20
P153,000
Cash
Accounts Receivable
135,000
Merchandise Inventory
Property, plant, and equipment (net of
accumulated depreciation of P120,000
and P114,000 as of 12/31/20 and
12/31/19 respectively)
144,000
108,000
P540,000
246,000
P579,000
Accounts payable
Income taxes payable
Bonds payable
Share capital
Retained Earnings
P66,000
132,000
135,000
81,000
P36,000
147,000
225,000
81,000
126,000
P540,000
90,000
P579,000
Income Statement
For the Year Ended December 31, 2020
Sales
Cost of sales
P3,150,000
2,682,000
468,000
Gross profit
Selling expenses
Administrative expenses
Income from operations
Interest expense
Profit before taxes
P225,000
72,000
(297,000)
171,000
(27,000)
144,000
Income taxes
Profit
(36,000)
P 108,000
The following additional data were provided:
1. Dividends for the year 2020 were P72,000
2. During the year, equipment was sold for P90,000. This equipment cost P132,000 originally and had a
book value of P108,000 at the time of sale. The loss on sale was incorrectly charged to the cost of sales.
3. All depreciation expense is in the selling expense category.

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