XYZ Company reported net income of P9,000,000 for the current year. Changes occurred in certain accounts as follows: Equipment - P750,000 increase; Accumulated depreciation P1,200,000 increase; Notes payable - P900,000 increase. During the year, the entity sold equipment costing P750,000, with a carrying value P390,000 for a gain of P150,000. In December of the current year, the entity purchased equipment costing P1,500,000 with P600,000 cash and a 12% note payable for the remainder. What amount should be reported as net cash provided by operating activities?
XYZ Company reported net income of P9,000,000 for the current year. Changes occurred in certain accounts as follows: Equipment - P750,000 increase; Accumulated depreciation P1,200,000 increase; Notes payable - P900,000 increase. During the year, the entity sold equipment costing P750,000, with a carrying value P390,000 for a gain of P150,000. In December of the current year, the entity purchased equipment costing P1,500,000 with P600,000 cash and a 12% note payable for the remainder. What amount should be reported as net cash provided by operating activities?
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter15: Statement Of Cash Flows
Section: Chapter Questions
Problem 2BE
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XYZ Company reported net income of P9,000,000 for the current year. Changes occurred in certain accounts as follows: Equipment - P750,000 increase;
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