Activity 1: Statement of Cash Flow

Rein Corporation
Comparative Statement of Financial Position
December 31, 2024

Assets 2024 2023

Cash ₱ 38,000.00 ₱ 20,000.00
Accounts Receivable 30,000.00 14,000.00
Inventory 27,000.00 20,000.00
Equipment 60,000.00 78,000.00
Accumulated Depreciation - equipment (29,000.00) (24,000.00)
₱ 126,000.00 ₱ 108,000.00

Liabilities and Stockholders' Equity

Accounts payable ₱ 24,000.00 ₱ 15,000.00
Income tax payable 7,000.00 8,000.00
Bonds payable 27,000.00 33,000.00
Common stock 18,000.00 14,000.00
Retained earning 50,000.00 38,000.00
₱ 126,000.00 ₱ 108,000.00

Rein Corporation
Statement of Income
For the year ended December 31, 2024

Sales ₱ 242,000.00
Cost of goods sold 175,000.00
Gross profit 67,000.00
Operating expenses 24,000.00
Income from operations 43,000.00
Interest expense 3,000.00
Income before income taxes 40,000.00
Income tax expense 8,000.00
Net income ₱ 32,000.00

Other information:

1. Dividends declared and paid were 20,000.

2. During the year, equipment was sold for 8,500 cash. This equipment cost 18,000 originally and had a book
value of 8,500 at the time of sale.
3. All depreciation expense, 14,500, is in the operating expenses.
4. All sales and purchases are on account.

Required:
Prepare a statement of cash fl ows using the indirect method.
Activity 2: Statement of Cash Flow

Prepare a statement of cash flows using the indirect method.

Albert Inc.
Comparative Statement of Financial Position
December 31, 2024

Assets 2024 2023

Cash ₱ 80,800.00 ₱ 48,400.00
Accounts receivable 92,800.00 33,000.00
Inventory 117,500.00 102,850.00
Prepaid expenses 28,400.00 26,000.00
Investments 143,000.00 114,000.00
Equipment 270,000.00 242,500.00
Accumulated depreciation - equipment (50,000.00) (52,000.00)
Total ₱ 682,500.00 ₱ 514,750.00

Liabilities and Stockholders' Equity

Accounts payable ₱ 112,000.00 ₱ 67,300.00
Accrued expenses payable 16,500.00 17,000.00
Bonds payable 110,000.00 150,000.00
Common stock 220,000.00 175,000.00
Retained earnings 224,000.00 105,450.00
Total ₱ 682,500.00 ₱ 514,750.00

Albert Inc.
Income Statement
For the year ended December 31, 2024

Sales revenue ₱ 392,780.00

Less:
Cost of goods sold ₱ 135,460.00
Operating expenses 12,410.00
Depreciation expense 46,500.00
Income tax expense 27,280.00
Interest expense 4,730.00
Loss on disposal of plant assets 7,500.00 233,880.00
Net Income ₱ 158,900.00

Additional Information
1. New equipment costing 85,000 was purchased for cash during the year.
2. Old equipment having an original cost of 57,500 was sold for 1,500 cash.
3. Bonds matured and were paid off at face value for cash.
4. A cash dividend of 40,350 was declared and paid during the year.