a. Received P180 000.00 cash investment from the owner bea oiti b. Provided P400 000.00 services on account c. Incurred P220 000.00 operating expenses on account d. Collected P320 000.00 cash from accounts receivable e. Allowed P30 000.00 cash withdrawal to the owner of the business f. Paid P160 000.00 cash on accounts payable g. Performed services for P30 000.00 cash h. Paid P12 000.00 cash for expenses
a. Received P180 000.00 cash investment from the owner bea oiti b. Provided P400 000.00 services on account c. Incurred P220 000.00 operating expenses on account d. Collected P320 000.00 cash from accounts receivable e. Allowed P30 000.00 cash withdrawal to the owner of the business f. Paid P160 000.00 cash on accounts payable g. Performed services for P30 000.00 cash h. Paid P12 000.00 cash for expenses
Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN:9781285595047
Author:Weil
Publisher:Weil
Chapter6: Statement Of Cash Flows
Section: Chapter Questions
Problem 37P
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Please answer number 4
Transcribed Image Text:j. Câsh päid out to
3. Read the scenario below. Then determine the net cash flows from operating activities
using the indirect method.
Innovative Apps had a profit of P330 000.00 in 2016. During the year, the entity had
a depreciation expense of P70 000.00. Accounts receivable increased by PI10 000.00
and accounts payable increased by P50 000.00. The entity started operations in 2016 and
the foregoing are the entity's only current assets and current liabilities.
4. Classify each of the following transactions as cash flow from operating activities (O), cash
flow from investing activities (I), or cash flow from financing activities (F). Transactions
that do not affect the CFS should be identified as N/A. Then prepare the CFS.
The following transactions pertain to the operations of Happy Events, an events
planning company owned by Jessie Natividad. The entity had the following transactions
during the month:
a. Received P180 000.00 cash investment from the owner
b. Provided P400 000.00 services on account
c. Incurred P220 000.00 operating expenses on account
d. Collected P320 000.00 cash from accounts receivable
e. Allowed P30 000.00 cash withdrawal to the owner of the business
f. Paid P160 000.00 cash on accounts payable
g. Performed services for P30 000.00 cash
h. Paid P12 000.00 cash for expenses
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