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A comparativé Bala follow: Rhyezel Company Comparative Balance Sheet As of the Years Ended December 31, 2018 and 2019 (in thousands) Assets 2019 2018 Cash P4 P11

A comparativé Bala follow: Rhyezel Company Comparative Balance Sheet As of the Years Ended December 31, 2018 and 2019 (in thousands) Assets 2019 2018 Cash P4 P11

FINANCIAL ACCOUNTING
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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Problem 1 A comparative balance sheet and income statement for Rhyezel Company follow: Rhyezel Company Comparative Balance Sheet As of the Years Ended December 31, 2018 and 2019 (in thousands) 2019 2018 Assets P4 P11 Cash 310 230 Accounts receivable 160 195 Inventory Prepaid expenses Plant and equipment Accumulated depreciation Long-term investments 8. 6. 500 420 (85) (70) 31 38 Total assets P298 P830 Liabilities and Shareholders' Equity Accounts payable P300 P225 Accrued liabilities 70 80 Bonds payable 195 170 Deferred income taxes 71 63 Ordinary shares Retained earnings Total liabilities and shareholders' equity 160 200 132 92 P298 P830 Rhyezel Company Income Statement For the Year Ended December 31, 2019 (in thousands) Sales P750 Cost of goods sold Gross margin Selling and administrative expenses Net operating income 450 300 223 77 Gain on sale of investments P5 Loss on sale of equipment 2 3 Income before taxes 80 Income taxes 24 Net income P56 During 2019, the company sold some equipment for P18,000 that had cost P30,000 and on which there was accumulated depreciation of P10,000. In addition, the company sold long-term investments for P12,000 that had cost
Transcribed Image Text:Problem 1 A comparative balance sheet and income statement for Rhyezel Company follow: Rhyezel Company Comparative Balance Sheet As of the Years Ended December 31, 2018 and 2019 (in thousands) 2019 2018 Assets P4 P11 Cash 310 230 Accounts receivable 160 195 Inventory Prepaid expenses Plant and equipment Accumulated depreciation Long-term investments 8. 6. 500 420 (85) (70) 31 38 Total assets P298 P830 Liabilities and Shareholders' Equity Accounts payable P300 P225 Accrued liabilities 70 80 Bonds payable 195 170 Deferred income taxes 71 63 Ordinary shares Retained earnings Total liabilities and shareholders' equity 160 200 132 92 P298 P830 Rhyezel Company Income Statement For the Year Ended December 31, 2019 (in thousands) Sales P750 Cost of goods sold Gross margin Selling and administrative expenses Net operating income 450 300 223 77 Gain on sale of investments P5 Loss on sale of equipment 2 3 Income before taxes 80 Income taxes 24 Net income P56 During 2019, the company sold some equipment for P18,000 that had cost P30,000 and on which there was accumulated depreciation of P10,000. In addition, the company sold long-term investments for P12,000 that had cost
P7,000 when purchased several vears ago, Cash dividends totaling P16,000 were paid during 2019. Required: 1. Using the indirect method, determine the net cash provided by operating activities for 2019. 2. Using the information in (1) above, along with an analysis of the remaining balance sheet accounts, prepare a statement of cash flows for 2019. Please present your answer here:
Transcribed Image Text:P7,000 when purchased several vears ago, Cash dividends totaling P16,000 were paid during 2019. Required: 1. Using the indirect method, determine the net cash provided by operating activities for 2019. 2. Using the information in (1) above, along with an analysis of the remaining balance sheet accounts, prepare a statement of cash flows for 2019. Please present your answer here:
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