Proof of Cash - Drill
Proof of Cash - Drill
Proof of Cash - Drill
3. S Company provided the following data for the preparation of statement of cash flows for the current year using the
direct method:
4. F Company used the direct method to prepare the statement of cash flows. The entity had the following cash flows
during the current year:
Cash receipts from issuance of ordinary shares P 4,000,000
Cash receipts from customers 2,000,000
Cash receipts from dividends on long-term investments 300,000
Cash receipts from payment of loan made to another entity 2,200,000
Cash payments for wages and other operating expenses 1,200,000
Cash payments for insurance 100,000
Cash payments for dividends 200,000
Cash payments for taxes 400,000
Cash payments to purchase land 800,000
In the statement of cash flows, what amount should be reported as net cash used in investing activities?
a. 3,725,000 c. 3,980,000
b. 3,805,000 d. 4,100,000
8. K Company reported net income of P3,000,000 for the current year. Changes occurred in certain accounts as follows:
Equipment 250,000 increase
Accumulated Depreciation 400,000 increase
Note payable 300,000 increase
During the year, the entity sold equipment costing P250,000, with accumulated depreciation of P120,000 for a
gain of P50,000.
In December of the current year, the entity purchased equipment costing P500,000 with P200,000 cash and a
12% note payable of P300,000.
8.1 In the statement of cash flows, what amount should be reported as net cash used in investing activities?
a. 20,000 c. 220,000
b. 120,000 d. 350,000
8.2 In the statement of cash flows, what amount should be reported as net cash provided by operating activities?
a. 3,400,000 c. 3,520,000
b. 3,470,000 d. 3,570,000