Honest Company had the following activities during the current year: • Acquired shares in Responsible Corporation for P1,200,000. • Acquired a P2,000,000, 3-years certificate of deposit from a bank. During the year, Honest received P100,000 of interest. • Collected dividends of P75,000 on share investments. • Sold an equipment with a book value of P500,000. The company incurred a loss of P50,000. What amount should be reported as net cash used in investing activities? a. (750,000) b. (1,200,000) c. (2,750,000) d. answer not given

Honest Company had the following activities during the current year: • Acquired shares in Responsible Corporation for P1,200,000. • Acquired a P2,000,000, 3-years certificate of deposit from a bank. During the year, Honest received P100,000 of interest. • Collected dividends of P75,000 on share investments. • Sold an equipment with a book value of P500,000. The company incurred a loss of P50,000. What amount should be reported as net cash used in investing activities? a. (750,000) b. (1,200,000) c. (2,750,000) d. answer not given

SWFT Corp Partner Estates Trusts

42nd Edition

ISBN:9780357161548

Author:Raabe

Publisher:Raabe

Chapter5: Corporations: Earnings & Profits And Dividend Distributions

Section: Chapter Questions

Problem 31P

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Clip Company had the following activities during the current year: Acquired shares in Paper Corporation for P1,200,000 Acquired a P2,000,000, 3-years certificate of deposit from a bank. During the year, Clip received P100,000 of interest. Collected dividends of P75,000 on share investments. Sold an equipment with a book value of P500,000. The company incurred a loss of P50,000. What amount should be reported as net cash used in investing activities?
Light Inc. had the following activities during the current year: • Acquired 4,000 shares of Dark Inc. for P5.200,000. • Sold an investment in Lonely Inc. for P7.000,000 when the carrying value was P6.600,000. • Acquired a P10,000,000, 4-year certificate of deposit from a bank. During the year, interest of 175.,000 was paid to Light Inc. • Collected dividends of P240.000 on share dividends. How much should be reported as cash inflows from operating activities?
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Light Inc. had the following activities during the current year: Acquired 4,000 shares of Dark Inc. for P5,200,000 Sold an investment in Lonely Inc. for P7,000,000 when the carrying value was P6,600,000. Acquired a P10,000,000, 4-year certificate of deposit from a bank. During the year, interest of 175,000 was paid to Light Inc. Collected dividends of P240,000 on share dividends. How much is the total cash outflows from investing activities? A. 15,200,000B. 7,000,000C. 6,600,000D. 5,200,000
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