ABAKA Co. reported the following differences in the statement of financial position accounts on December 31, 2023 and 2022. Additional information: - Net income for the current year was P1,900,000 - During 2023, ABAKA Co. purchased trading securities for P900,000 cash and sold trading securities costing P500,000 for P800,000. On December 31, 2023, the market value of the remaining trading securities increased to P500,000. - Cash dividend of P500,000 was declared. - Equipment costing P800,000 and having a carrying amount of P550,000 was sold for P650,000. - Equipment costing P3,000,000 was acquired through issuance of long-term debt. - The long-term investment pertains to 20% common stock investment in SANDALS Corp. which was purchased on December 31, 2022. SANDALS Corp. reported 2023 net income at P5,000,000 and declared and paid dividends of P500,000. - 100,000 ordinary shares were issued for P20. Requirements: Determine the net cash provided by: a) Operating activities b) Investing activities c) Financing activities
ABAKA Co. reported the following differences in the statement of financial position accounts on December 31, 2023 and 2022. Additional information: - Net income for the current year was P1,900,000 - During 2023, ABAKA Co. purchased trading securities for P900,000 cash and sold trading securities costing P500,000 for P800,000. On December 31, 2023, the market value of the remaining trading securities increased to P500,000. - Cash dividend of P500,000 was declared. - Equipment costing P800,000 and having a carrying amount of P550,000 was sold for P650,000. - Equipment costing P3,000,000 was acquired through issuance of long-term debt. - The long-term investment pertains to 20% common stock investment in SANDALS Corp. which was purchased on December 31, 2022. SANDALS Corp. reported 2023 net income at P5,000,000 and declared and paid dividends of P500,000. - 100,000 ordinary shares were issued for P20. Requirements: Determine the net cash provided by: a) Operating activities b) Investing activities c) Financing activities
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
ABAKA Co. reported the following differences in the
Additional information:
- Net income for the current year was P1,900,000
- During 2023, ABAKA Co. purchased trading securities for P900,000 cash and sold trading securities costing P500,000 for P800,000. On December 31, 2023, the market value of the remaining trading securities increased to P500,000.
- Cash dividend of P500,000 was declared.
- Equipment costing P800,000 and having a carrying amount of P550,000 was sold for P650,000.
- Equipment costing P3,000,000 was acquired through issuance of long-term debt.
- The long-term investment pertains to 20% common stock investment in SANDALS Corp. which was purchased on December 31, 2022. SANDALS Corp. reported 2023 net income at P5,000,000 and declared and paid dividends of P500,000.
- 100,000 ordinary shares were issued for P20.
Requirements:
Determine the net cash provided by:
a) Operating activities
b) Investing activities
c) Financing activities
Transcribed Image Text:ASSETS
Cash and cash equivalents
Trading securities
Accounts receivable
Allowance for doubtful accounts
Inventory
Long-term investments
Property, plant and equipment
Accumulated depreciation
Patent, net
Total assets
LIABILITIES AND SHAREHOLDERS' EQUITY
Accounts payable and accrued liabilities
Dividend payable
Short-term bank debt
Long-term debt
Deferred tax liability
Ordinary share capital, P10 par
Share premium
Retained earnings
Total liabilities and shareholders' equity
2023
7,200,000
500,000
2,300,000
(300,000)
5,600,000
2,900,000
15,000,000
(3,600,000)
2,000,000
31,600,000
5,600,000
100,000
3,000,000
2,000,000
900,000
5,000,000
3,000,000
12,000,000
31,600,000
2022
6,000,000
1,100,000
(100,000)
4,300,000
2,000,000
10,000,000
(3,100,000)
2,500,000
22,700,000
5,400,000
3,500,000
200,000
4,000,000
2,000,000
7,600,000
22,700,000
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