A. Directions: Shown below is the general ledger of cash account of Mekus Mekus Company broken down as follows.

Prepare a Statement of Cash Flows for the year ended December 31, 2022. Cash balance beginning January 1, 2022 is
Php 60,000.

B. Directions. Answer the following questions

1. Gain on sale of property and equipment is part of what activity in the CFS?
2. Changes in long term liabilities is part of what activity in the CFS?
3. Net income is part of which Approach in preparing the CFS?
4. The company presented the following in order to aid the accountant in preparing the CFS: Net income: P200,000,
Depreciation expense: P 25,000, Gain on sale of property and equipment: P100,000, Decrease in trade and other
receivables: P 70,000, Purchase of property and equipment: P200,000, Payment of loan from bank: P150,000. Compute
for the cash generated/used in financing activities.
5.Based on the given above, compute for the net change in cash for the year.
6. If ending balance of cash account is P700,000, prepare the CFS for the year.
7. Identify which of the following transactions fall under operating, investing and financing activities: Cash received from
customers, Cash paid to suppliers, Cash paid to employees, Cash paid to purchase equipment (company does not sell
equipment), Cash received from sale of furniture (company’s main line of business is not related to furniture),
Depreciation expense, Sale of goods on credit, Purchase of goods on credit, Cash received from getting a loan from a
bank, Cash paid to owners
8. Juana’s sari-sari store had the following transactions during the year: Purchase of goods paid cash 100,000, Sale of
goods received cash 150,000, Paid utilities 30,000, Paid rent 10,000, sold equipment for cash 100,000, Owner
withdraws investment 10,000. Compute for the net cash flow generated by/used in operating activities
9. Using the given above, compute for the net cash flow generated by/used in investing activities.
10. Using the given above, compute for the net cash flow generated by/used in financing activities.
11. Using the given above, prepare a Cash Flow Statement.