1.

Y Company reported the following assets at year-end:

Treasury bills acquired with less than 3 months before maturity P1,500,000
Money market placements 1,200,000
Financial assets held for trading 1,000,000
What total amount should be reported as cash equivalents at year-end?
a. 1,500,000 c. 2,700,000
b. 4,700,000 d. 2,500,000

2. O Company provided the following data for the year:

Cash balance, beginning of year P 1,300,000
Cash flow from financing activities 1,000,000
Cash flow from operating activities 400,000
Cash flow from investing activities (1,500,000)
Total shareholder’s equity, beginning of year 2,000,000

What is the cash balance at the end of current year?

a. 1,200,000 c. 1,400,000
b. 1,600,000 d. 1,700,000

3. S Company provided the following data for the preparation of statement of cash flows for the current year using the
direct method:

Cash balance, beginning P 1,500,000

Cash paid to purchase inventory 7,800,000
Cash received from sale of trading securities 2,500,000
Cash paid for interest 450,000
Cash paid to repay a loan 1,000,000
Cash collected from customers 10,000,000
Cash received from issuance of ordinary shares 1,200,000
Cash paid for dividends 780,000
Cash paid for income taxes 1,350,000
Cash paid to purchase trading securities 1,000,000

What is the net cash flow from operating activities?

a. 1,900,000 c. 2,350,000
b. 2,900,000 d. 400,000

4. F Company used the direct method to prepare the statement of cash flows. The entity had the following cash flows
during the current year:
Cash receipts from issuance of ordinary shares P 4,000,000
Cash receipts from customers 2,000,000
Cash receipts from dividends on long-term investments 300,000
Cash receipts from payment of loan made to another entity 2,200,000
Cash payments for wages and other operating expenses 1,200,000
Cash payments for insurance 100,000
Cash payments for dividends 200,000
Cash payments for taxes 400,000
Cash payments to purchase land 800,000

What is the net cash provided by operating activities?

a. 600,000 c. 300,000
b. 400,000 d. 200,000
5. R Company reported net income of P3,520,000 for the current year. The entity provided the following additional
information:
Purchase of plant assets 2,800,000
Depreciation of plant assets 1,480,000
Dividends declared 970,000
Net decrease in noncash current assets 290,000
Loss on sale of equipment 130,000

What is the net cash provided by operating activities?

a. 5,420,000 c. 7,250,000
b. 5,130,000 d. 5,290,000

6. A Company had the following activities during the current year:

 Acquired 2,000 shares of M Company for P2,600,000.
 Sold an investment in R Motors for P3,500,000 when the carrying value was P3,300,000.
 Acquired a P5,000,000, 4-year certificate of deposit from a bank. During the year, interest of P375,000 was paid
to A.
 Collected dividends of P120,000 on share investments.

In the statement of cash flows, what amount should be reported as net cash used in investing activities?
a. 3,725,000 c. 3,980,000
b. 3,805,000 d. 4,100,000

7. R Company provided the following information for the current year:

 Purchased a building for P1,200,000. Paid 400,000 and signed a mortgage with the seller for remaining
P800,000.
 Executed a debt-equity swap and replaced a P600,000 loan by giving the lender ordinary shares worth P600,000
on the date the swap was executed.
 Purchased land for P1,000,000. Paid 350,000 and issued ordinary shares worth P650,000.
 Borrowed 550,000 under a long-term loan agreement. Used the cash from the loan proceeds as follows:
P150,000 for purchase of additional inventory, P300,000 to pay cash dividend, and P100,000 to increase the
cash balance.
What amount should be reported as net cash used in investing activities in the statement of cash flows?
a. 1,200,000 c. 400,000
b. 2,200,000 d. 750,000

8. K Company reported net income of P3,000,000 for the current year. Changes occurred in certain accounts as follows:
Equipment 250,000 increase
Accumulated Depreciation 400,000 increase
Note payable 300,000 increase

 During the year, the entity sold equipment costing P250,000, with accumulated depreciation of P120,000 for a
gain of P50,000.
 In December of the current year, the entity purchased equipment costing P500,000 with P200,000 cash and a
12% note payable of P300,000.

8.1 In the statement of cash flows, what amount should be reported as net cash used in investing activities?
a. 20,000 c. 220,000
b. 120,000 d. 350,000

8.2 In the statement of cash flows, what amount should be reported as net cash provided by operating activities?
a. 3,400,000 c. 3,520,000
b. 3,470,000 d. 3,570,000