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?A. 175,000B. 415,000C. 0D. 250,000

Cash inflows from operating activities mean the cash received in respect of carrying out the daily…

Answered: Light Inc. had the following 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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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?

A. 175,000
B. 415,000
C. 0
D. 250,000

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