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  • Account Receivable, End 1,250,000.00: All Increases in Noncash Trade Current Assets Are Deducted

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    Rodolfo Manalac
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    The document shows accounting transactions for a company over multiple periods. It records increases and decreases in accounts receivable and accounts payable as trade assets and liabilities change. It also records depreciation expense, a loss on disposal of inventory, and calculates net income under both the indirect and direct methods of determining cash flow from operating activities.

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    Original Title

    MANACC-Lesson-4-Statement-of-Cash-Flow

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    The document shows accounting transactions for a company over multiple periods. It records increases and decreases in accounts receivable and accounts payable as trade assets and liabilities change. It also records depreciation expense, a loss on disposal of inventory, and calculates net income under both the indirect and direct methods of determining cash flow from operating activities.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    29 views4 pages

    Account Receivable, End 1,250,000.00: All Increases in Noncash Trade Current Assets Are Deducted

    Uploaded by

    Rodolfo Manalac
    The document shows accounting transactions for a company over multiple periods. It records increases and decreases in accounts receivable and accounts payable as trade assets and liabilities change. It also records depreciation expense, a loss on disposal of inventory, and calculates net income under both the indirect and direct methods of determining cash flow from operating activities.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 4

    All increases in noncash trade current assets are deducted

    Account Receivable, Beg 500,000.00


    Credit Sales 1,500,000.00 increase in trade current asset
    Proceeds from Sales - 750,000.00 decrease in trade current asset
    Account Receivable, End 1,250,000.00

    Increase in Accounts Receivable 750,000.00

    Accounts Payable, Beg. 50,000.00


    Purchase of Inventory on account 750,000.00 increase in trade current liability
    Payment for trade purchases - 500,000.00 decrease in trade current liability
    Accounts Payable, End 300,000.00

    Increase in Accounts Payable 250,000.00

    Out of the Php750,000 OPEX, Php250,000 pertains to Depreciation

    Gain / Loss on Disposal of Property

    Inventory worth P100,000 was sold for Php90,000


    Accounts Receivable 1,500,000.00
    Sales 1,500,000.00

    Cash 750,000.00
    Accounts Receivable 750,000.00

    Purchases 750,000.00
    Accounts Payable 750,000.00

    Accounts Payable 500,000.00


    Cash 500,000.00

    Depreciation Expense 250,000.00


    Accumulated Depreciation 250,000.00

    Cash 90,000.00
    Loss on Disposal 10,000.00
    Inventory 100,000.00
    Sales
    Cash Sales 1,000,000.00
    Credit Sales 1,500,000.00 2,500,000.00
    Less: Cost of Sales 750,000.00
    Gross Profit 1,750,000.00
    Less: Operating Expenses 750,000.00
    Net Income / (Loss) 1,000,000.00 first item in indirect method o
    Increase in Trade current asset - 1,500,000.00 to be deducted
    Decrease in Trade current asset 750,000.00 to be added
    Cash flow from operating activities 250,000.00

    Sales
    Cash Sales 1,000,000.00
    Credit Sales 1,500,000.00 2,500,000.00
    Less: Cost of Sales 750,000.00
    Inventory, Beg 400,000.00
    Cash Purchases 100,000.00
    Purchases on Account 750,000.00
    Goods available for sale 1,250,000.00
    Inventory, End 500,000.00
    Gross Profit 1,750,000.00
    Less: Operating Expenses 750,000.00
    Loss on Disposal of Property 10,000.00
    Net Income / (Loss) 990,000.00 first item in indirect method o
    Increase in Trade current asset - 1,500,000.00 to be deducted
    Decrease in Trade current asset 750,000.00 to be added
    Increase in Trade current liability 750,000.00 to be added
    Decrease in Trade current liability - 500,000.00 to be deducted
    Non-Cash Expense 250,000.00 to be added
    Gain on Disposal of Propery - to be deducted
    Loss on Disposal of Property 10,000.00 to be added
    Cash flow from operating activities 750,000.00
    Sales
    Cash Sales 1,000,000.00
    Credit Sales 750,000.00 1,750,000.00
    Less: Cost of Sales 750,000.00
    Gross Profit 1,000,000.00
    Less: Operating Expenses 750,000.00
    Net Income / (Loss) 250,000.00
    -

    Sales
    Cash Sales 1,000,000.00
    Proceeds from Credit Sales 750,000.00 1,750,000.00
    Less: Cost of Sales 750,000.00
    Inventory, Beg 400,000.00
    Cash Purchases 100,000.00
    Purchases on Account -
    Goods available for sale 500,000.00
    Inventory, End - 250,000.00
    Gross Profit 1,000,000.00
    Less: Operating Expenses 750,000.00

    Net Income / (Loss) 250,000.00


    - 500,000.00

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