10. STU Company provided the following information for the current year: • Purchased a building for P1,200,000. Signed a mortgage with the seller for P800,000 and paid cash for the remainder. Sold a land with cost of P1,500,000 at a loss of P275,000. Purchased a patent for P1,000,000. Issued ordinary shares worth P650,000 and paid cash for the balance. Borrowed P550,000 under a long-term loan agreement. Used the cash from the loan proceeds as follows: P150,000 for purchase of additional inventory, P300,000 to pay cash dividend, and P100,000 to increase the cash balance. What amount should be reported as net cash provided by/used from investing activities in the statement of cash flows? (Indicate if provided or used)
10. STU Company provided the following information for the current year: • Purchased a building for P1,200,000. Signed a mortgage with the seller for P800,000 and paid cash for the remainder. Sold a land with cost of P1,500,000 at a loss of P275,000. Purchased a patent for P1,000,000. Issued ordinary shares worth P650,000 and paid cash for the balance. Borrowed P550,000 under a long-term loan agreement. Used the cash from the loan proceeds as follows: P150,000 for purchase of additional inventory, P300,000 to pay cash dividend, and P100,000 to increase the cash balance. What amount should be reported as net cash provided by/used from investing activities in the statement of cash flows? (Indicate if provided or used)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:10. STU Company provided the following information for the current year:
Purchased a building for P1,200,000. Signed a mortgage with the seller for P800,000 and paid cash for the
remainder.
Sold a land with cost of P1,500,000 at a loss of P275,000.
Purchased a patent for P1,000,000. Issued ordinary shares worth P650,000 and paid cash for the balance.
Borrowed P550,000 under a long-term loan agreement. Used the cash from the loan proceeds as follows:
P150,000 for purchase of additional inventory, P300,000 to pay cash dividend, and P100,000 to increase the cash
balance.
What amount should be reported as net cash provided by/used from investing activities in the statement of cash
flows? (Indicate if provided or used)
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