STATEMENT OF CASH FLOW ILLUSTRATION:

ABC Corporation
Comparative Statement of Financial Position
As of December 31, 2011 and 2010
ASSETS
Current Assets:
Cash
Accounts Receivable
Inventory
Prepaid Expenses
Total current assets
Noncurrent Assets:
Long term investments
Property, plant and equipment
Accumulated Depreciation
Total noncurrent assets

2011

2010

P 300,0000
840,000
660,000
100,000
1,900,000

P 200,000
580,000
420,000
50,000
1,250,000

P 80,000
1,130,000
(110,000)
P1,100,000

P 600,000
(50,000)
P 550,000

Total Assets

P3,000,000

P1,800,000

L I A B I L I T I E S & S H A R E H O L D E R S E Q U I
TY
Current Liabilities:
Accounts Payable
Accrued Expenses
Dividend payable
Total current liabilities
Noncurrent liability:
Mortgage loan payable
Total Liabilities

P 530,000
140,000
70,000
P 740,000

P 440,000
130,000
P 570,000

P 500,000
P1,240,000

P 570,000

Shareholders equity
Ordinary shares
Accumulated Profits
Total Stockholders Equity

P1,200,000
560,000
P1,760,000

P 900,000
330,000
P1,230,000

Total Liabilities & Shareholders Equity

P3,000,000

P1,800,000

Additional Information:
1. Included in the P400,000 income reported in the income statement is the P20,000 loss from the sale of an
equipment with carrying cost of P40,000 at the end of the year, net of P10,000 Accumulated Depreciation.

2. Part of total dividends declared was already paid.

ABC Corporation
Statement of Cash Flows
For the year ended December 31, 2011
Cash flow from operating activities:
Net income reported in the income statement (accrual basis)
Add (deduct) adjustments:
Loss on sale of equipment
Depreciation reported in the income statement
Increase in Accounts Receivable
Increase in Inventory
Increase in Prepaid Expenses
Increase in Accounts Payable
Increase in Accrued Expenses Payable
Net cash provided by operating activities
Cash flows from investing activities:
Proceeds from sale of equipment
Acquisition of long term investment
Acquisition of property, plant and equipment
Net cash provided by the investing activities
Cash flows from financing activities:
Cash proceeds from long term loan
Cash from issuance of ordinary shares
Payment of dividends
Net cash provided by financing activities
Increase in cash
Add: Cash, January 01, 2011
Cash, December 31, 2011

This should be equal

to the amount of cash
reported in the
balance sheet