Entity A Statement of Comprehensive Income For the year ended December 31, 20x1 Sales 980,000 (440,000) 540,000 (40,000) (165,000) (132,000) (40,000) (33,000) Cost of sales GROSS PROFIT Depreciation expense Salaries expense Utilities expense Insurance expense Interest expense Gain on sale of equipment 40,000 170,000 PROFIT FOR THE YEAR Other comprehensive income 170,000 COMPREHENSIVE INCOME FOR THE YR. Additional information: • Equipment with carrying amount of P100,000 was sold for P140,000 resulting to a gain on sale of P40,000. Equipment costing P300,000 was acquired for cash. • Entity A obtaiņed a short-term loan of P120,000. • The owner provided additional contribution of P50,000 to the business. Requirement: I'repare the statement of cash flows using the indirect method of ling activities

Entity A Statement of Comprehensive Income For the year ended December 31, 20x1 Sales 980,000 (440,000) 540,000 (40,000) (165,000) (132,000) (40,000) (33,000) Cost of sales GROSS PROFIT Depreciation expense Salaries expense Utilities expense Insurance expense Interest expense Gain on sale of equipment 40,000 170,000 PROFIT FOR THE YEAR Other comprehensive income 170,000 COMPREHENSIVE INCOME FOR THE YR. Additional information: • Equipment with carrying amount of P100,000 was sold for P140,000 resulting to a gain on sale of P40,000. Equipment costing P300,000 was acquired for cash. • Entity A obtaiņed a short-term loan of P120,000. • The owner provided additional contribution of P50,000 to the business. Requirement: I'repare the statement of cash flows using the indirect method of ling activities

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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Similar questions

Give an explanation of cash flows from operating activities (Cash Flows from Operations)
Explain classify the cash flows in a statement of cash flows.
The two approaches to reporting cash flows provided by operating activities are the a. the liquidity and profitability methods. b. the basic and standard methods. c. direct and indirect methods. d. the gross margin and contribution margin methods.
Describe the two formats for reporting operating activities on the statement of cash flows.
When using the indirect method of preparing the statement of cash flows, the starting pointto determine net cash provided by operating activities isa. sales.b. net income.c. the beginning cash balance.d. the ending cash balance.
Identify and explain the major steps involved in preparingthe statement of cash flows.
Define Net cash provided by operating activities
In the operating activities portion of the statement of cash flows when utilizing the indirect method, explain why depreciation expenditure, depletion expense, and amortization expense are added to net income in the operating activities section of the statement of cash flows.