Exercise 5-7 The beginning and ending balances in each of the balance sheet accounts of the Mexico Company are as follows: Dec. 31, 2019 P260,000 180,000 400,000 50,000 P890,000 P1,200,000 Dec. 31, 2020 P100,000 Cash Accounts receivable 360,000 Inventory 460,000 Prepaid insurance Total current assets 30,000 P950,000 P1,500,000 Land Plant & equipment Accumulated depreciation Total non-current assets 1,000,000 1,400,000 (400,000) PI,800,000 (500.000) P2.400,000 Total assets P2,690,000 P3,350,000 P 260,000 Accounts payable Accrued operating expenses Interest payable Income taxes payable Total current liabilities P 300,000 200,000 20,000 122,000 P 642,000 600,000 132,000 30,000 150.000 P 572,000 700,000 1,100,000 Bonds payable Common stock 800,000 Retained earnings 648,000 978,000 Total liabilities & equity P2,690,000 P3,350,000 The forecast income statement for the Mexico Company for 2020 presented below: P2,500,000 Sales 1,400,000 P1,100,000 300,000 P 800,000 50,000 P 750,000 300,000 P 450,000 Cost of sales Gross profit Operating expenses Income before interest & tax Interest expense Income before tax Income tax Net income REQUIRED: 1. Prepare a forecast cash flow statement for 2020

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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GLOBE
64% D 7:14
TNT
Exercise 5-7
The beginning and ending balances in each of the balance sheet accounts
of the Mexico Company are as follows:
Dec. 31, 2019
P260,000
Dec, 31, 2020
P100,000
Cash
Accounts receivable
180,000
360,000
Inventory
Prepaid insurance
Total current assets
400,000
460,000
50,000
P890,000
30,000
P950,000
P1,500,000
Land
P1,200,000
Plant & equipment
Accumulated depreciation
1,000,000
1,400,000
(400,000)
P1,800,000
(500.000)
P2,400,000
Total non-current assets
Total assets
P2,690,000
P3,350,000
P 300,000
200.000
P 260,000
132,000
30,000
Accounts payable
Accrued operating expenses
Interest payable
Income taxes payable
Total current liabilities
20,000
Bonds payable
Common stock
Retained earnings
122,000
P 642,000
600,000
800,000
150,000
P 572,000
700,000
1,100,000
978,009
648,000
Total liabilities & equity
P2,690,000
P3,350,000
The forecast income statement for the Mexico Company for 2020
presented below:
P2,500,000
Sales
Cost of sales
Gross profit
Operating expenses
Income before interest & tax
Interest expense
1,400,000
P1,100,000
300,000
P 800,000
50,000
P 750,000
300,000
P 450,000
Income before tax
Income tax
Net income
REQUIRED:
1. Prepare a forecast cash flow statement for 2020,
Transcribed Image Text:GLOBE 64% D 7:14 TNT Exercise 5-7 The beginning and ending balances in each of the balance sheet accounts of the Mexico Company are as follows: Dec. 31, 2019 P260,000 Dec, 31, 2020 P100,000 Cash Accounts receivable 180,000 360,000 Inventory Prepaid insurance Total current assets 400,000 460,000 50,000 P890,000 30,000 P950,000 P1,500,000 Land P1,200,000 Plant & equipment Accumulated depreciation 1,000,000 1,400,000 (400,000) P1,800,000 (500.000) P2,400,000 Total non-current assets Total assets P2,690,000 P3,350,000 P 300,000 200.000 P 260,000 132,000 30,000 Accounts payable Accrued operating expenses Interest payable Income taxes payable Total current liabilities 20,000 Bonds payable Common stock Retained earnings 122,000 P 642,000 600,000 800,000 150,000 P 572,000 700,000 1,100,000 978,009 648,000 Total liabilities & equity P2,690,000 P3,350,000 The forecast income statement for the Mexico Company for 2020 presented below: P2,500,000 Sales Cost of sales Gross profit Operating expenses Income before interest & tax Interest expense 1,400,000 P1,100,000 300,000 P 800,000 50,000 P 750,000 300,000 P 450,000 Income before tax Income tax Net income REQUIRED: 1. Prepare a forecast cash flow statement for 2020,
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