truct a statement of cash flows us
Sample Problem: Use the following data to construct a statement of cash flows using the direct and indirect
|
methods. |
2020 |
2019 |
|
Cash |
P4,000 |
P14,000 |
|
|
25,000 |
32,500 |
|
Prepaid insurance |
5,000 |
7,000 |
|
Inventory |
37,000 |
34,000 |
|
Fixed assets |
316,000 |
270,000 |
Total assets
|
Accounts payable |
P18,000 |
P16,000 |
|
Wages payable |
4,000 |
7,000 |
|
Note payable |
173,000 |
160,000 |
|
Capital stock |
88,000 |
84,000 |
Total Liabilities & Equity
Sales
|
Cost of goods sold |
(123,000) |
|
Depreciation expense |
(15,000) |
|
Insurance expense |
(11,000) |
Wage Expense
Net Income
During 2020 declared and paid dividends of P2,500 During 2020, ABC paid P46,000 in cash to acquire new fixed assets. The accounts payable was used only for inventory. No debt was retired during 2020. Prepare Statement of Cash Flow using;
- Direct Method
- Indirect Method
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