Problem 4: Following are the comparative statements of financial position of CPA Company toadd in preparing a statement of cash flows:●CPA CompanyStatement of Financial PositionDecember 31, 2021 and 2020AssetsCash and cash equivalentsFinancial assets at FVPLAccounts receivableInventoryLong-term investmentsProperty, plant and equipmentLess: accumulated depreciationPatentsLess: accumulated amortizationTotal assetsLiabilities and EquityAccounts payableIncome tax payable12% bonds payableLess: discount on bonds payableOrdinary share capitalRetained earningsThe following events took place in 2021:2021P900,0002020P620,000300,000400,0001,956,500 1,445,0003,050,000 3,200,0001,000,000 1,250,0009,000,000 8,000,000(2,200,000) (2,000,000)600,000 600,000(100,000)P14,606,500 P13,415,000P2,200,000P1,900,00034,50045,0004,000,000 4,000,000(250,000)(300,000)7,500,000 6,500,0001,122,000 1,270,000P14,606,500 P13,415,000CPA Company declared and paid cash dividends of P750,000.A long-term investment was sold for P280,000.Equipment costing P900,000 with accumulated depreciation of P400,000 was sold forP420,000.Other information:The 6% bonds payable were issued on December 31, 2020 and interest is payableevery December 31.Income tax rate is 30%.Required: Prepare a statement of cash flows for the year ended December 31, 2021 forCPA Company using the indirect method of presenting cash flows from operatingactivities.

Cash Flow Statement There are mainly three segment in the Cash flow statement. The details are…

Other information: The 6% bonds payable were issued on December 31, 2020 and interest is payable every December 31. Income tax rate is 30%. ● P420,000. ● Required: Prepare a statement of cash flows for the year ended December 31, 2021 for CPA Company using the indirect method of presenting cash flows from operating activities.

Other information: The 6% bonds payable were issued on December 31, 2020 and interest is payable every December 31. Income tax rate is 30%. ● P420,000. ● Required: Prepare a statement of cash flows for the year ended December 31, 2021 for CPA Company using the indirect method of presenting cash flows from operating activities.

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter7: Receivables And Investments

Section: Chapter Questions

Problem 7.19MCE

See similar textbooks

Similar questions

What adjustment(s) should be made to reconcile net income to net cash flows from operating activities (indirect method) considering the following balances in current assets?
Statement of cash flowsindirect method The comparative balance sheet of Coulson, Inc. at December 31, 20Y2 and 20Y1, is as follows: The noncurrent asset, noncurrent liability, and stockholders equity accounts for 20Y2 are as follows: Instructions Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities.
Use the following information from Isthmus Companys financial statements to prepare the operating activities section of the statement of cash flows (indirect method) for the year 2018.
The comparative balance sheet of Coulson, Inc. at December 31, 20Y2 and 20Y1, is as follows: The noncurrent asset, noncurrent liability, and stockholders equity accounts for 20Y2 are as follows: Instructions Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities.
The comparative balance sheet of Whitman Co. at December 31, 20Y2 and 20Y1, is as follows: The noncurrent asset, noncurrent liability, and stockholders equity accounts for 20Y2 are as follows: Instructions Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities.
Classifying Items in the Statement of Cash Flows The following items are commonly reported in a statement of cash flows (indirect method presentation). For each item 1 through 20, determine (a) in which section the item is presented (operating, investing, or financing) and (b) whether the associated dollar amount is added or subtracted in the statement. (a) (b) 1. Payments of short-term debt. AnswerOperatingInvestingFinancing AnswerAddSubtract 2. Repurchases of common stock. AnswerOperatingInvestingFinancing AnswerAddSubtract 3. Purchases of property and equipment. AnswerOperatingInvestingFinancing AnswerAddSubtract 4. Sale of investments classified as long-term. AnswerOperatingInvestingFinancing AnswerAddSubtract 5. Proceeds from the issuance of common stock. AnswerOperatingInvestingFinancing AnswerAddSubtract 6. Increase in prepaid expenses and other current assets. AnswerOperatingInvestingFinancing AnswerAddSubtract 7. Acquisition for cash of a competitor.…
classification of the changes below into Operating, investing and financing activities for statement of cash flow purposes. Accounts recievable Inventories Prepayments Property, Plant, and equipment (at cost) Accumulated Depreciation Other Non-operating Assets Accounts payable Other current liabilities Long-Term Debt Other Non-operating liabilities common stock Retained Earnings.
Using the direct method of preparing the statement of cash flows, to determine the cash effects of operating activities, which of the following needs to be adjusted? a. Equity as reported in the balance sheet b. Long-term assets and liabilities from the balance sheet c. Net income d. Reported revenues and expenses
14. Cash Flow Statement Required: Prepare a statement of Cash Flows For Year Ended December 31, 2021 Use Proper Format and Indirect Method The comparative balance sheets of Street Inc. at the beginning and end of the year 2021 are as follows: Cash Accounts Receivable Inventory Property, Plant and Equipment Accumulated Depreciation Marketable Securities Loan Receivable Total Assets Accounts Payable Income Taxes Payable Dividends Payable Lease Liability Common Stock Capital in Excess of Par Retained Earnings Total Liabilities and Stockholders Equity Street, Inc. Income Statement For Year Ended December 31, 2021 Sales Cost of Good Sold Gross Profit Depreciation Expense Administrative Expense Earnings Before Interest and Taxes Interest Expense Earnings Before Taxes Taxes Net Income Dec 31st $600,000 332,000 4,100,000 600,000 550,000 (325,000) (300,000) 1,250,000 1,000,000 100,000 $6,557,000 $6,070,000 $180,000 $140,000 45,000 46,000 10,000 January 1st $320,000 300,000 4,100,000 $4,000,000…
In a statement of cash flows (indirect method), the amortization ofpatents of a company with substantial operating profits should bepresented as a(n): a. cash flow from investing activitiesb. cash flow from financing activitiesc. deduction from net incomed. addition to net income
How would the purchase of non-current (capital) assets appear on the statement of cash flows? Question 4 options: an inflow of cash under investing activities an inflow of cash under operating activities an outflow of cash under operating activities an outflow of cash under investing activities
Common-size Balance Sheet. Explain what it is and why it is used inbusiness. Prepare common-size balance sheet for Target with the infoprovided below. Assets CashAccounts receivableInventoryOther current assetsTotal current assetsGross plant and equipmentAccumulated depreciationNet plant and equipmentLong-term investmentsGoodwill, trademarks, andother intangible assetsTotal assets $ Dec 31, 2022$20,2684,8733.2772,886$31,304$25,032-10,065$14,96711,512 32,272 $90,055