San Juan Resorts began the year 2017 with cash of P5,590,000. In addition to earning a profit of P3,250,000 and making cash withdrawals of P1,950,000, San Juan Resorts borrowed P7,800,000 from the bank and purchased equipment with P11,700,000 of cash. Also Accounts Receivable increased by P780,000 and Accounts Payable increased by P1,170,000. Determine the amount of cash on hand as at December 31, 2017 by preparing a statement of cash flows. Show the net cash flow in each Cash flow Activity.

San Juan Resorts began the year 2017 with cash of P5,590,000. In addition to earning a profit of P3,250,000 and making cash withdrawals of P1,950,000, San Juan Resorts borrowed P7,800,000 from the bank and purchased equipment with P11,700,000 of cash. Also Accounts Receivable increased by P780,000 and Accounts Payable increased by P1,170,000. Determine the amount of cash on hand as at December 31, 2017 by preparing a statement of cash flows. Show the net cash flow in each Cash flow Activity.

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter12: The Statement Of Cash Flows

Section: Chapter Questions

Problem 12.6P

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