Statement of Cashflows

Operating Activities – Direct Method

1) The following information is available from Ram Corp.’s accounting records for the year ended December 31, 2022:
Cash paid to suppliers and employee 1,020,000
Cash dividends paid 60,000
Cash received from customers 1,740,000
Rent received 20,000
Taxes paid 220,000
Net cash flow provided by operating activities for 2022 was
A. 440,000
B. 460,000
C. 500,000
D. 520,000

Operating Activities – Indirect Method

2) Mimzee Corporation had net income for 2020 of P3,000,000. Additional information is as follows:
Depreciation of plant assets 1,200,000
Amortization of intangibles 240,000
Increase in accounts receivable 420,000
Increase in accounts payable 540,000
Mimzee’s net cash provided by operating activities for 2020 was
A. 4,560,000
B. 4,440,000
C. 4,320,000
D. 1,680,000

Operating Activities – Indirect Method (Non Cash Items)

3) Give It To Me Company provided the following information for the preparation of the statement of cash flows for the current
year:
Net income 5,000,000
Amortization of patent 45,000
Depreciation of property, plant and equipment 1,650,000
Long-term debt:
Bond premium amortization 65,000
Interest paid 900,000
Unrealized loss on financial asset held for trading 100,000
Unrealized loss on financial asset at fair value through other comprehensive income 400,000
What is the net cash provided by operating activities for the current year?
A. 6,760,000
B. 6,630,000
C. 6,730,000
D. 6,860,000

Operating Activities – Indirect Method Workback

4) The following information relates to the activities of I Miss You Company. Income tax may be ignored.
Net cash flows form operating activities 720,000
Decrease in trade payables 23,000
Decrease in inventory 11,500
Increase in trade receivables 24,600
Cash proceeds from sale of plant (book value of P25,000) 14,000
Increase in allowance for doubtful debts 1,000
What is the profit for the period?
A. 698,100
B. 730,100
C. 744,100
D. 767,100

Investing Activities
5) Beerus Corporation provided the following information on selected transactions during 2017:

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 Proceeds from sale of equipment 100,000
Purchase of bonds, par 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 share (carrying amount of P650,000) 750,000
Purchase of land by issuing bonds 400,000
Loans made to affiliated corporations 560,000
Amortization of patent 50,000
Proceeds from issuing preference share 640,000

How much would be the net cash provided (used) by investing activities?
A.2,660,000
B.2,260,000
C.2,100,000
D.1,700,000

Financing Activities
6) Timothy Company provided the following transactions for the year ended December 31, 2020:
 Acquired 50% of Carlo Company’s share for P1,800,000 cash which was borrowed from a bank.
 Issued 5,000 shares for land having a fair value of P3,200,000.
 Issued 5,000 11% debenture bonds with P1,000 face amount, due 2025, for P3,920,000 cash.
 Purchased a patent for P2,200,000 cash.
 Paid P1,200,000 toward a bank loan.
 Sold financial asset at FVOCI for P800,000.
 Had net increase in advances from customer of P880,000.

What amount should be reported as net cash from financing activities?

A.4,520,000
B.5,400,000
C.2,720,000
D.6,600,000

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