Application and Creation 1. Case A – Algeria Co. Below are the cash transactions of Alderia Co. for December 31, 2015. Cash payment to suppliers of goods and services (25,000) Cash receipts from rendering of services 50,000 Payment to owners (5,000) Proceeds from bank loans 25,000 Proceeds from cash investment of owners 115,000 Payment for acquisition of equipment 100,000 Cash at the beginning of the year 1,000,000 Instructions: Prepare the statement of cash flow using the indirect method. After which, answer the following questions. How much is cash flow from operating activities? How much is cash flow from investing activities? How much is cash flow from financing activities? How much is the net increase or decrease in cash for the year? How much is cash as at December 31, 2015?
B. Application and Creation
1. Case A – Algeria Co.
Below are the cash transactions of Alderia Co. for December 31, 2015.
Cash payment to suppliers of goods and
services
(25,000)
Cash receipts from rendering of services 50,000
Payment to owners (5,000)
Proceeds from bank loans 25,000
Proceeds from cash investment of owners 115,000
Payment for acquisition of equipment 100,000
Cash at the beginning of the year 1,000,000
Instructions: Prepare the statement of
After which, answer the following questions.
How much is cash flow from operating activities?
How much is cash flow from investing activities?
How much is cash flow from financing activities?
How much is the net increase or decrease in cash for the year?
How much is cash as at December 31, 2015?
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