STATEMENT OF CASH FLOWS

Exercise 13 – Problems (Investing and Financing Cash Flows)

1. ODETTE Company reported the following account balances:

January 1 December 31
Building, net P9,000,000 P9,800,000
Land 8,000,000 10,000,000
Cash dividends payable 300,000 550,000
Share capital, P10 par value 12,000,000 14,000,000
Share premium 3,000,000 5,000,000
Retained earnings 7,000,000 10,500,000
Net income, 2021 4,800,000

The Company also provided the following additional information:

a. Depreciation in the building amounted to P800,000. There were no other

transactions involving the building, except for a new building received in
exchange of the Company’s ordinary shares.
b. A certain number of shares were issued for certain amount of cash.

Based solely on this information, determine the net amount of cash generated
from (used in): (a) investing activities; and (b) financing activities.

2. During 2021, HARLEY Company reported the following partial list of accounts with
their corresponding balances:
January 1 December 31
Loan receivables P10,000,000 P8,000,000
Investments at amortized cost 5,000,000 6,000,000
Investments at FVTPL 3,000,000 3,400,000
Land 7,000,000 8,500,000
Building, net 9,000,000 10,500,000
Equipment, net 4,000,000 2,850,000
Accounts payable 900,000 760,000
 Bonds payable 7,800,000 9,300,000
Share capital 7,500,000 8,800,000
Share premium 450,000 950,000
Retained earnings 18,000,000 20,000,000
Revaluation surplus – land - 1,500,000
Net income, 2021 6,400,000
Unrealized gain on FVTPL investments 400,000
Loss on sale of equipment 280,000
Depreciation expense – equipment 600,000
Depreciation expense – building 1,200,000

Assuming that all unaccounted changes in the account balances are transactions involving
cash flows, determine the amount of cash generated (used in): (a) investing activities; and
(b) financing activities.