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Dela Rosa Company Company The income statement for the year ended December 31, 2020, for Dela Rosa Company Company contains the following condensed information. Dela Rosa Company Company Income Statement For the Year Ended December 31, 2X20 Sales revenue P6,583,000 Cost of goods sold Operating expenses (excluding depreciation) Depreciation expense Loss on disposal of plant assets Income before income taxes Income tax expense Net income P2,810,000 2,086,000 880,000 24,000 5,800,000 783,000 353,000 P430,000 The P24,000 loss resulted from selling equipment for P270,000 cash. The equipment was purchased at a cost of P750,000. The following balances are reported on Delar Rosa's comparative balance sheets at December 31. Dela Rosa Company Company Comparative Balance Sheets 2X19 P130,000 610,000 867,000 501,000 2X20 Cash Accounts receivable P672,000 775,000 834,000 521,000 Inventory Accounts payable Income tax expense of P353,000 represents the amount paid in 2020. Dividends declared and paid in 2020 totaled P200,000. Required: Prepare the statement of cash flows using a. Indirect method b. Direct method

Dela Rosa Company Company The income statement for the year ended December 31, 2020, for Dela Rosa Company Company contains the following condensed information. Dela Rosa Company Company Income Statement For the Year Ended December 31, 2X20 Sales revenue P6,583,000 Cost of goods sold Operating expenses (excluding depreciation) Depreciation expense Loss on disposal of plant assets Income before income taxes Income tax expense Net income P2,810,000 2,086,000 880,000 24,000 5,800,000 783,000 353,000 P430,000 The P24,000 loss resulted from selling equipment for P270,000 cash. The equipment was purchased at a cost of P750,000. The following balances are reported on Delar Rosa's comparative balance sheets at December 31. Dela Rosa Company Company Comparative Balance Sheets 2X19 P130,000 610,000 867,000 501,000 2X20 Cash Accounts receivable P672,000 775,000 834,000 521,000 Inventory Accounts payable Income tax expense of P353,000 represents the amount paid in 2020. Dividends declared and paid in 2020 totaled P200,000. Required: Prepare the statement of cash flows using a. Indirect method b. Direct method

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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Dela Rosa Company Company The income statement for the year ended December 31, 2020, for Dela Rosa Company Company contains the following condensed information. Dela Rosa Company Company Income Statement For the Year Ended December 31, 2X20 Sales revenue P6,583,000 Cost of goods sold Operating expenses (excluding depreciation) Depreciation expense Loss on disposal of plant assets Income before income taxes Income tax expense Net income P2,810,000 2,086,000 880,000 24,000 5,800,000 783,000 353,000 P430,000 The P24,000 loss resulted from selling equipment for P270,000 cash. The equipment was purchased at a cost of P750,000. The following balances are reported on Delar Rosa's comparative balance sheets at December 31. Dela Rosa Company Company Comparative Balance Sheets 2X19 P130,000 610,000 867,000 501,000 2X20 Cash Accounts receivable P672,000 775,000 834,000 521,000 Inventory Accounts payable Income tax expense of P353,000 represents the amount paid in 2020. Dividends declared and paid in 2020 totaled P200,000. Required: Prepare the statement of cash flows using a. Indirect method b. Direct method
Transcribed Image Text:Dela Rosa Company Company The income statement for the year ended December 31, 2020, for Dela Rosa Company Company contains the following condensed information. Dela Rosa Company Company Income Statement For the Year Ended December 31, 2X20 Sales revenue P6,583,000 Cost of goods sold Operating expenses (excluding depreciation) Depreciation expense Loss on disposal of plant assets Income before income taxes Income tax expense Net income P2,810,000 2,086,000 880,000 24,000 5,800,000 783,000 353,000 P430,000 The P24,000 loss resulted from selling equipment for P270,000 cash. The equipment was purchased at a cost of P750,000. The following balances are reported on Delar Rosa's comparative balance sheets at December 31. Dela Rosa Company Company Comparative Balance Sheets 2X19 P130,000 610,000 867,000 501,000 2X20 Cash Accounts receivable P672,000 775,000 834,000 521,000 Inventory Accounts payable Income tax expense of P353,000 represents the amount paid in 2020. Dividends declared and paid in 2020 totaled P200,000. Required: Prepare the statement of cash flows using a. Indirect method b. Direct method
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