Pamantasan ng Cabuyao

Katapatan Subd., Banay Banay, City of Cabuyao

Accounting Review III - Practical Accounting I (ACCTG100C) P1 - 25

STATEMENT OF CASH FLOWS
Use the following information for Questions 1 through 3:

April Company provided the following information:

2018 2017

Cash 6,600,000 5,500,000

Financial asset held for trading 2,500,000
Accounts receivable 4,800,000 3,200,000
Allowance for doubtful accounts ( 800,000) ( 200,000)
Inventories 5,200,000 7,000,000
Investment in associate 5,400,000 5,000,000
Property, plant and equipment 13,000,000 9,000,000
Accumulated depreciation ( 3,700,000) ( 3,200,000)
Patent, net 1,000,000 1,700,000

Accounts payable 4,800,000 4,500,000

Note payable – bank 2,000,000 3,500,000
Deferred tax liability 700,000 500,000
Bonds payable 3,000,000
Share capital, P10 par value 18,000,000 15,000,000
Share premium 1,500,000 1,000,000
Treasury shares at cost ( 500,000)
Retained earnings 4,500,000 3,500,000

Additional informations:
v The net income for the current year is P6,000,000. The entity paid a cash dividend of P5,000,000 on October 1,
2018.
v During the current year, the entity purchased financial asset held for trading for P3,000,000 cash and sold
financial asset held for trading costing P1,000,000 for P1,400,000 cash. On December 31, 2018, the market
value of the remaining financial asset increased by P500,000.
v On January 1, 2018, the entity sold equipment costing P1,000,000, with a carrying amount of P600,000, for
P500,000.
v On July 1, 2018, the entity purchased equipment for P2,000,000 cash.
v On December 31, 2018, the entity purchased land by issuing bonds payable at face value of P3,000,000.
v On December 31, 2017, the entity acquired 20% of another entity’s share capital for P5,000,000. The associate
reported income of P3,000,000 for 2018 and paid cash dividend of P1,000,000 on December 31, 2018.

1. What is the net cash provided by operating activities?

A. P6,500,000 C. P9,000,000
B. 6,100,000 D. 8,600,000
2. What is the net cash used in investing activities?
A. P1,900,000 C. P3,500,000
B. 1,500,000 D. 4,000,000
3. What is the net cash used in financing activities?
A. P3,500,000 C. P1,000,000
B. 3,100,000 D. 4,000,000

4. Jesmar Company provided the following information for the current year:

Dividend received 500,000

Dividend paid 1,000,000
Cash received from customers 9,000,000
Cash paid to suppliers and employees 6,000,000
Interest received 200,000
Interest paid on long-term debt 400,000
Proceeds from issuing share capital 1,500,000
Proceeds from sale of long-term investments 2,000,000
Income taxes paid 300,000
 What is the net cash provided by operating activities?
A. P3,300,000 C. P2,700,000
B. 3,000,000 D. 2,000,000

5. During 2014, Rey Company had the following activities related to financial operations:

Payment for early retirement of long-term bonds payable

(carrying amount of bonds payable, P5,000,000) 4,000,000
Payment in 2018 of cash dividend declared in 2017 2,000,000
Preference share capital converted into ordinary share capital 1,000,000
Proceeds from sale of treasury shares (cost of treasury shares P1,000,000) 1,500,000

What amount should be reported as net cash used in financing activities?

A. P4,500,000 C. P2,500,000
B. 3,500,000 D. 5,500,000

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

• Acquired share capital of another entity for P2,000,000.

• Sold an investment with carrying amount of P2,000,000 for P1,500,000.
• Acquired a P5,000,000 one-year certificate of deposit from a bank. During the year, interest of P500,000 was
received from the bank.
• Collected dividends of P300,000 on share investments.

What amount should be reported as net cash used in investing activities?

A. P5,500,000 C. P4,700,000
B. 5,000,000 D. 6,300,000

7. Andrew Company provided the following data for the current year:

Gain on sale of equipment 60,000

Proceeds for sale of equipment 100,000
Purchase of bonds with face value of P2,000,000 1,800,000
Amortization of bond discount 20,000
Dividends declared 450,000
Dividends paid 380,000
Proceeds from sale of treasury shares (carrying amount of treasury P650,000) 750,000

What amount should be reported as net cash used in investing activities?

A. P1,700,000 C. P1,880,000
B. 1,760,000 D. 1,940,000

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wep/acctng100c/statementofcashflows