ACTIVITY

IN
CASH FLOW STATEMENT
1. Identify which of the following transaction fall under operating,
investing and financing activities:
Cash Transactions Answers

a. Cash received from customers

b. Cash paid to supplier

c. Cash paid to employees

d. Cash paid to purchase equipment

e. Cash received from sale of furniture

f. Depreciation expense

g. Sale of goods on credit

h. Purchase of goods on credit

i. Cash received from getting a loan from a bank

j. Cash paid to owners

2. Juana’s sari-sari store had the following transaction during the year.

a. Purchase of goods for cash P 100,000

b. Sale of goods for cash 150,000

c. Paid Utilities 30,000

d. Paid Rent 10,000

e. Sold equipment for cash 100,000

f. Owner withdraws from investment 10,000

Required: Compute for the net cash flow by/used in operating activities.

3. Using the given information above, compute the net cash flow
generated by/used in investing activities.
4. Using the given information above, compute the net cash flow
generated by/used in financing activities.

5. Using the given information above, prepare a Cash Flow Statement

of Juana as of December 31, 2019.
 ACTIVITY
IN
FINANCIAL STATEMENT
ANALYSIS PART 1 -
HORIZONTAL AND VERTICAL
1. Prepare common-size/vertical analysis Statement of
Comprehensive Income for 2014 and 2013 for Abakada Trading
Company and Make you own interpretation.

2014 2013
Sales 1,939,500 1,674,675
Cost of Goods Sold 900,000 843,975
Gross Profit 1,039,500 830,700
Selling and General Expenses 445,500 409,725
Other Expenses 37,575 30,825
Net Income 556,425 390,150
2. Prepare horizontal analysis Statement of Financial Position for
2015 and 2014 for Ilang-Ilang Trading Company and Make you own
interpretation.
2015 2014
Current Assets 265,500 192,375
Property, Plant, and Equipment 967,500 937,508
Other Assets 159,750 152,618
Total Assets 1,392,750 1,282,500
Total Current Liabilities 225,450 220,590
Long term Debt 460,250 491,198
Owner’s Capital 706,950 570,713
Total Liabilities and Capital 1,392,750 1,282,500
MULTIPLE CHOICE: Read the statements carefully and write your answer on the blanks
provided.
Merdana’s Hands Merchandising
(For numbers 1 to 5)
Statement of Financial Position
Merdana’s Hands Merchandising As of December 31, 2022
Statement of Comprehensive Income 2015 2014
For the yera ended December 31, 2015 Cash 12,250 10,470
Sales P 104,705 Accounts Receivable 9,065 8,055
Cost of Goods Sold 32,275 Inventory 6,620 5,300
Gross Profit P 69, 430 Prepaid Expenses 8,545 10,600
Selling Expenses 35,325 Total Curent Assets 36,480 34,425
Administrative Expenses 12,815 Other Assets 92,500 78,685
Operating Income P 21,290 Total Assets 127,980 113,110
Interest Expense 1,050 Current Libilities 36,150 42,335
Net Income P 20,240 Long-Term Liabilities 23,990 18,960
Merdana’s Capital 68,840 51,815
Total Liabilities and 127,980 113,110
Owner’s Equity
1. Horizontal analysis of Merdana’s Balance Sheet would report;
a. Cash as 9.50% of total assets
b. 17% increase in Prepaid Expenses
c. 19% increase in Cash
d. None of the above

2. Vertical analysis Merdana’s 2015 balance sheet would report;

a. Cash as 10% of total assets
b. 17% increase in Prepaid Expenses
c. 19% increase in Cash
d. All of the above

3. A common-size Income Statement for Merdana’s would report (amounts rounded)

a. Net Income of 19%
b. Sales of 100%
c. Cost of sales at 34%
d. All of the above
4. A common-size balance sheet for Merdana’s would report (amounts rounded)
a. Current liabilities as 28% of total assets
b. Owner’s capital is 54% of total liabilities and equity
c. Receivable is 7% of total assets
d. All of the above

5. Horizontal analysis for Merdana’s balance sheet will show which of the following?
a. 15% increase in Current Liabilities
b. 33% increase in Owner’s Capital
c. 19% increase in Long Term Liabilities
d. All of the above

6. If current assets are P270,000 and total assets are P810,000, what percentage of total assets
are current assets?
a. 3.5 percent
b. 30 percent
c.25 percent
d. 33 percent
7. Comparing the amount of a balance sheet in one year to the amount for the
same item in a prior year in called_____.
a. common-size analysis
b. vertical analysis
c. horzontal analysis
d. ratio analysis

8. A firm has liabilities of P30,000 and owner’s capital of P90,000. The percentage
of total liabilities to total assets are_____.
a. 25 percent
b. 20 percent
c. 50 percent
d. 75 percent
9. A firm had owner’s capital of P150,000 in 2013 and P187,500 in 2014. The
increase in owner’s capital from 2013 to 2014 is _____.
a. 12.5 percent
b. 20 percent
c. 25 percent
d. 125 percent

10. If long-term liabilities are P300,000 and total assets are P2,100,000, what
percentage of total assets are long-term liabilities.
a. 7 percent
b. 16.7 percent
c. 12.5 percent
d 14.3 percent