183Exercise 5-7The beginning and ending balances in each of the halance sheet accountsof the Mexico Company are as follows:Dec. 31, 2020PI00,000Dec. 31. 2019CashP260,000Accounts reccivable180,000360,000400,00050.000P890,000P1,200,000Inventory460,000Prepaid insuranceTotal current assets30,000P950,000P1,500,000LandPlant & equipmentAccumulated depreciation1,000,0001.400.000(400,000)P1.800,000(500,000)P2,400,000Total non-current assetsTotal assetsP2,690,000P3,350,000Accounts payableAccrued operating expensesInterest payableIncome taxes payableP 300,000P 260.000200,000132,00020,000122,000P 642,00030,000150,000P 572,000700,000Total current liabilitiesBonds payable600,000Common stock800,0001,100,000Retained earnings648,000978,000Total liabilities & equityP2,690,000P3,350,000The forecast income statement for the Mexico Company for 2020 isresented below:SalesP2,500,000Cost of salesGross profitOperating expensesIncome before interest & taxInterest expense1,400,000P1,100,000300,000P 800,00050,000P 750,000300,000P 450,000Income before taxIncome taxNet incomeQUIRED:Prepare a forccast cash flow statement for 2020,

The Financial Statement of a company of two years are given. Required Forecast Cash Flow…

183 Exercise 5-7 The beginning and ending balances in each of the hbalance sheet accounts of the Mexico Company are as follows: Dec. 31, 2020 P100,000 Dec. 31. 2019 Cash P260,000 Accounts reccivable 180,000 360,000 Inventory 400,000 460,000 Prepaid insurance Total current assets 50.000 P890,000 P1,200,000 30,000 P950,000 P1,500,000 Land Plant & equipment Accumulated depreciation Total non-current assets 1,000,000 1.400.000 (400,000) P1.800,000 (500,000) P2,400,000 Total assets P2,690,000 P3,350,000 Accounts payable Accrued operating expenses Interest payable Income taxes payabie P 300,000 P 260.000 200,000 132,000 20,000 122,000 P 642,000 30,000 150,000 P 572,000 Total current liabilities Bonds payable 600,000 700,000 Common stock 800,000 648,000 1,100,000 Retained earnings 978,000 Total liabilities & equity P2,690,000 P3,350,000 The forecast income statement for the Mexico Company for 2020 is resented below: Sales P2,500,000 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 QUIRED: Prepare a forecast cash flow statement for 2020,

183 Exercise 5-7 The beginning and ending balances in each of the hbalance sheet accounts of the Mexico Company are as follows: Dec. 31, 2020 P100,000 Dec. 31. 2019 Cash P260,000 Accounts reccivable 180,000 360,000 Inventory 400,000 460,000 Prepaid insurance Total current assets 50.000 P890,000 P1,200,000 30,000 P950,000 P1,500,000 Land Plant & equipment Accumulated depreciation Total non-current assets 1,000,000 1.400.000 (400,000) P1.800,000 (500,000) P2,400,000 Total assets P2,690,000 P3,350,000 Accounts payable Accrued operating expenses Interest payable Income taxes payabie P 300,000 P 260.000 200,000 132,000 20,000 122,000 P 642,000 30,000 150,000 P 572,000 Total current liabilities Bonds payable 600,000 700,000 Common stock 800,000 648,000 1,100,000 Retained earnings 978,000 Total liabilities & equity P2,690,000 P3,350,000 The forecast income statement for the Mexico Company for 2020 is resented below: Sales P2,500,000 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 QUIRED: Prepare a forecast cash flow statement for 2020,

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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