Financial Statements of Melon Corporation for 2020 and 2019 are provided below: Statement of Financial Position 12/31/20 P153,000 12/31/19 P72,000 Cash Accounts Receivable 135,000 81,000 Merchandise Inventory Property, plant, and equipment (net of accumulated depreciation of P120,000 and P114,000 as of 12/31/20 and 12/31/19 respectively) 144,000 180,000 108,000 P540,000 246,000 P579,000 Accounts payable Income taxes payable Bonds payable Share capital Retained Eamings P66,000 132,000 P36,000 147,000 225,000 81,000 _90,000 P579,000 135,000 81,000 126.000 P540,000 Income Statement For the Year Ended December 31, 2020 P3,150,000 Sales Cost of sales 2,682,000 468,000 Gross profit Selling expenses Administrative expenses Income from operations Interest expense Profit before taxes P225,000 72.000 (297,000) 171,000 (27,000) 144,000 Income taxes (36.000) Profit P 108.000 The following additional data were provided: 1. Dividends for the year 2020 were P72,000 2. During the year, equipment was sold for P90,000. This equipment cost P132,000 originally and had a book value of P108,000 at the time of sale. The loss on sale was incorrectly charged to the cost of sales. 3. All depreciation expense is in the selling expense category.
Financial Statements of Melon Corporation for 2020 and 2019 are provided below: Statement of Financial Position 12/31/20 P153,000 12/31/19 P72,000 Cash Accounts Receivable 135,000 81,000 Merchandise Inventory Property, plant, and equipment (net of accumulated depreciation of P120,000 and P114,000 as of 12/31/20 and 12/31/19 respectively) 144,000 180,000 108,000 P540,000 246,000 P579,000 Accounts payable Income taxes payable Bonds payable Share capital Retained Eamings P66,000 132,000 P36,000 147,000 225,000 81,000 _90,000 P579,000 135,000 81,000 126.000 P540,000 Income Statement For the Year Ended December 31, 2020 P3,150,000 Sales Cost of sales 2,682,000 468,000 Gross profit Selling expenses Administrative expenses Income from operations Interest expense Profit before taxes P225,000 72.000 (297,000) 171,000 (27,000) 144,000 Income taxes (36.000) Profit P 108.000 The following additional data were provided: 1. Dividends for the year 2020 were P72,000 2. During the year, equipment was sold for P90,000. This equipment cost P132,000 originally and had a book value of P108,000 at the time of sale. The loss on sale was incorrectly charged to the cost of sales. 3. All depreciation expense is in the selling expense category.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
answers are given. Only need solutions
What is the net cash provided by operating activities?
a) P90,000
b) P108,000
c) P153,000-answer
d) P75,000
51. Using the data in no. 50, what is the net cash provided (used) by investing
activities?
a) (P108,000)-answer
b) P90,000
c) P18,000
d) (P132,000)
52.Using the data in no. 50, what is the net cash provided (used) by financing activities?
a) (P162,000)-answer
b) P72,000
c) (P90,000)
d) P18,000
Transcribed Image Text:Financial Statements of Melon Corporation for 2020 and 2019 are provided below:
Statement of Financial Position
12/31/19
P72,000
81,000
180,000
12/31/20
P153,000
Cash
Accounts Receivable
135,000
Merchandise Inventory
Property, plant, and equipment (net of
accumulated depreciation of P120,000
and P114,000 as of 12/31/20 and
12/31/19 respectively)
144,000
108,000
P540,000
246,000
P579,000
Accounts payable
Income taxes payable
Bonds payable
Share capital
Retained Earnings
P66,000
132,000
135,000
81,000
P36,000
147,000
225,000
81,000
126,000
P540,000
90,000
P579,000
Income Statement
For the Year Ended December 31, 2020
Sales
Cost of sales
P3,150,000
2,682,000
468,000
Gross profit
Selling expenses
Administrative expenses
Income from operations
Interest expense
Profit before taxes
P225,000
72,000
(297,000)
171,000
(27,000)
144,000
Income taxes
Profit
(36,000)
P 108,000
The following additional data were provided:
1. Dividends for the year 2020 were P72,000
2. During the year, equipment was sold for P90,000. This equipment cost P132,000 originally and had a
book value of P108,000 at the time of sale. The loss on sale was incorrectly charged to the cost of sales.
3. All depreciation expense is in the selling expense category.
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