Problem 4: Following are the comparative statements of financial position of CPA Company toadd in preparing a statement of cash flows:●CPA CompanyStatement of Financial PositionDecember 31, 2021 and 2020AssetsCash and cash equivalentsFinancial assets at FVPLAccounts receivableInventoryLong-term investmentsProperty, plant and equipmentLess: accumulated depreciationPatentsLess: accumulated amortizationTotal assetsLiabilities and EquityAccounts payableIncome tax payable12% bonds payableLess: discount on bonds payableOrdinary share capitalRetained earningsThe following events took place in 2021:2021P900,0002020P620,000300,000400,0001,956,500 1,445,0003,050,000 3,200,0001,000,000 1,250,0009,000,000 8,000,000(2,200,000) (2,000,000)600,000 600,000(100,000)P14,606,500 P13,415,000P2,200,000P1,900,00034,50045,0004,000,000 4,000,000(250,000)(300,000)7,500,000 6,500,0001,122,000 1,270,000P14,606,500 P13,415,000CPA Company declared and paid cash dividends of P750,000.A long-term investment was sold for P280,000.Equipment costing P900,000 with accumulated depreciation of P400,000 was sold forP420,000.Other information:The 6% bonds payable were issued on December 31, 2020 and interest is payableevery December 31.Income tax rate is 30%.Required: Prepare a statement of cash flows for the year ended December 31, 2021 forCPA Company using the indirect method of presenting cash flows from operatingactivities.

Cash Flow Statement There are mainly three segment in the Cash flow statement. The details are…

Other information: The 6% bonds payable were issued on December 31, 2020 and interest is payable every December 31. Income tax rate is 30%. ● P420,000. ● Required: Prepare a statement of cash flows for the year ended December 31, 2021 for CPA Company using the indirect method of presenting cash flows from operating activities.

Other information: The 6% bonds payable were issued on December 31, 2020 and interest is payable every December 31. Income tax rate is 30%. ● P420,000. ● Required: Prepare a statement of cash flows for the year ended December 31, 2021 for CPA Company using the indirect method of presenting cash flows from operating 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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