Levi had following information on is books: 2019 2020 Accounts Receivable 500,000 1,000,000 Accounts Payable 350,000 50,000 Prepaid Rent 200,000 475,000 Loans Receivable 500,000 250,000 Loans Payable 150,000 Depreciation Expense 100,000 100,000 Net income for 2020 was P7,000,000. • Levi (owner) invested P500,000 worth of inventories to the company, and withdrew P150,000 cash. • Levi purchased P2,000,000 worth of land. He paid 50% as a down payment, and the other 50% will be payable on December 31, 2021. 1.) How much is the net cash effect relating to Levi's operating activities? 2.) How much is the net cash effect relating to Levi's investing activities? 3.) How much is the net cash effect relating to Levi's financing activities? 4) How much is the total net cash effect?

Levi had following information on is books: 2019 2020 Accounts Receivable 500,000 1,000,000 Accounts Payable 350,000 50,000 Prepaid Rent 200,000 475,000 Loans Receivable 500,000 250,000 Loans Payable 150,000 Depreciation Expense 100,000 100,000 Net income for 2020 was P7,000,000. • Levi (owner) invested P500,000 worth of inventories to the company, and withdrew P150,000 cash. • Levi purchased P2,000,000 worth of land. He paid 50% as a down payment, and the other 50% will be payable on December 31, 2021. 1.) How much is the net cash effect relating to Levi's operating activities? 2.) How much is the net cash effect relating to Levi's investing activities? 3.) How much is the net cash effect relating to Levi's financing activities? 4) How much is the total net cash effect?

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter5: Business Deductions

Section: Chapter Questions

Problem 28P

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