UNIVERSITY OF NUEVA CACERES

COLLEGE OF BUSINESS AND ACCOUTANCY

Conceptual Framework and Accounting Standards

ACTIVITY JGAMBOA
MORALES, CHRISTINE JOY D. (1ST year- BSA)

PROBLEM 1

COVID Company provided the following information during the current year:

Cash balance, January 1 3,600,000.00

Income taxes paid 600,000.00
Interest paid on long term debt 400,000.00
Interest received 400,000.00
Cash paid to suppliers and employees 12,000,000.00
Cash received from customers 18,000,000.00
Proceeds from sale of long term investments 4,000,000.00
Proceeds from issuing share capital 3,000,000.00
Dividend paid 2,000,000.00
Dividend received 500,000.00
Required: Prepare Statement of Cash Flows for COVID Company for the current year.

Answer:

COVID COMPANY
Statement of Cash Flows
For the year ended December 31,2020XCash balance,
January 1 3,600,000.00

OPERATING ACTIVITIES
Income taxes paid (600,000.00)
Cash paid to suppliers and employees (12,000,000.00)
Cash received from customers 18,000,000.00
Dividend paid (2,000,000.00)
Net cash flows from operating 3,400,000.00

INVESTING ACTIVITIES
Interest received 400,000.00
Dividend received 500,000.00
Proceeds from sale of long term investments 4,000,000.00
Net cash flows from investing 4,900,000.00

FINANCING ACTIVITIES
Interest paid on long term debt (400,000.00)
Proceeds from issuing share capital 3,000,000.00
Net cash flows from investing 2,600,000.00
 UNIVERSITY OF NUEVA CACERES
COLLEGE OF BUSINESS AND ACCOUTANCY
Conceptual Framework and Accounting Standards

ACTIVITY JGAMBOA
MORALES, CHRISTINE JOY D. (1ST year- BSA)
Net increase(decrease) in cash and cash equivalents 10,900,000.00
CASH AND CASH EQUIVALENTS, END OF PERIOD 14,500,000.00

PROBLEM 2

WILEY Company had the following cash flows during the current year:

Cash receipts from issuance of ordinary shares 2,000,000.00

Cash receipts from repayment of loan made to another entity 1,100,000.00
Cash receipts from customers 1,000,000.00
Cash payments for wages and other operating expenses 600,000.00
Cash payment to purchase land 400,000.00
Cash payment for taxes 200,000.00
Cash receipts from dividends on long-term investments 150,000.00
Cash payment for dividends 100,000.00
Cash payments for insurance 50,000.00
Cash balance - beginning 1,750,000.00

Required: Prepare Statement of Cash Flows for WILEY Company for the current year.

Answer:
Cash balance, January 1 1,750,000

OPERATING ACTIVITIES
Cash receipts from customers 1,000,000.00
Cash payments for wages and other operating expenses (600,000.00)
Cash payment for taxes (200,000.00)
Cash payment for dividends (100,000.00)
Cash payments for insurance (50,000.00)
Net Cash Flows in Operating Activities 50,000.00

INVESTING ACTIVITIES
Cash payment to purchase land (400,000.00)
Net Cash Flows in Investing Activities (400,000.00)

FINANCING ACTIVITIES
Cash receipts from issuance of ordinary shares 2,000,000.00
Cash receipts from dividends on long-term investments 150,000.00
Cash receipts from repayment of loan made to another 1,100,000.00
 UNIVERSITY OF NUEVA CACERES
COLLEGE OF BUSINESS AND ACCOUTANCY
Conceptual Framework and Accounting Standards

ACTIVITY JGAMBOA
MORALES, CHRISTINE JOY D. (1ST year- BSA)
entity
Net Cash Flows in Financing Activities 3,250,000.00

Net Increase (Decrease) in Cash and Cash Equivalents 2,900,000.00

CASH AND CASH EQUIVALENT, END OF PERIOD 4,650,000.00