Problem 17-6 (AICPA Adapted) Fearsome Company showed the following comparative statement of financial position: 2017 2016 Cash and cash equivalents Accounts receivable, net of allowance Inventory Investment in Hall Company at equity Land 350,000 700,000 850,000 2,000,000 1,500,000 4,000,000 ( 1,050,000) ( 800,000) 400,000 9,000,000 2,350,000 600,000 1,000,000 2,200,000 2,000,000 5,000,000 Property, plant and equipment Accumulated depreciation Goodwill 400,000 12,500,000 550,000 Accounts payable Note payable - long term Bonds payable Share capital, P100 par Share premium Retained earnings Treasury shares, at cost 600,000 500,000 1,600,000 5,250,000 2,700,000 1,850,000 2,100,000 4,000,000 1,750,000 1,300,000 =( _700,000) 9,000,000 12,500,000 Additional information 1. The net income for the current year was P3,050,000. 2. Cash dividend paid amounted to P2,500,000. 3. The entity sold equipment costing P200,000, with carrying amount of P50,000, for P70,000 cash. 4. The entity issued 10,000 shares of capital for P150 per share cash. 5. The entity sold all of its treasury shares for P900,000 cash 6. Individuals holding P500,000 face value bonds exercisec their conversion privilege. Each of the 500 bonds was converted into 5 shares of capital. 7. The entity purchased equipment for P1,200,000. 8. Land with a fair value of P500,000 was purchased throug the issuance of a long term note. Required: Prepare a statement of cash flows for the current year.
Problem 17-6 (AICPA Adapted) Fearsome Company showed the following comparative statement of financial position: 2017 2016 Cash and cash equivalents Accounts receivable, net of allowance Inventory Investment in Hall Company at equity Land 350,000 700,000 850,000 2,000,000 1,500,000 4,000,000 ( 1,050,000) ( 800,000) 400,000 9,000,000 2,350,000 600,000 1,000,000 2,200,000 2,000,000 5,000,000 Property, plant and equipment Accumulated depreciation Goodwill 400,000 12,500,000 550,000 Accounts payable Note payable - long term Bonds payable Share capital, P100 par Share premium Retained earnings Treasury shares, at cost 600,000 500,000 1,600,000 5,250,000 2,700,000 1,850,000 2,100,000 4,000,000 1,750,000 1,300,000 =( _700,000) 9,000,000 12,500,000 Additional information 1. The net income for the current year was P3,050,000. 2. Cash dividend paid amounted to P2,500,000. 3. The entity sold equipment costing P200,000, with carrying amount of P50,000, for P70,000 cash. 4. The entity issued 10,000 shares of capital for P150 per share cash. 5. The entity sold all of its treasury shares for P900,000 cash 6. Individuals holding P500,000 face value bonds exercisec their conversion privilege. Each of the 500 bonds was converted into 5 shares of capital. 7. The entity purchased equipment for P1,200,000. 8. Land with a fair value of P500,000 was purchased throug the issuance of a long term note. Required: Prepare a statement of cash flows for the current year.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Problem 17-6 (AICPA Adapted)
statement of financial position:
2017
2016
Cash and cash equivalents
Accounts receivable, net of allowance
Inventory
Investment in Hall Company at equity
Land
2,350,000
600,000
1,000,000
2,200,000
2,000,000
5,000,000
( 1,050,000) ( 800,000)
400,000
350,000
700,000
850,000
2,000,000
1,500,000
4,000,000
Property, plant and equipment
Accumulated depreciation
Goodwill
400,000
12,500,000
9,000,000
550,000
Accounts payable
Note payable - long term
Bonds payable
Share capital, P100 par
Share premium
Retained earnings
Treasury shares, at cost
600,000
500,000
1,600,000
5,250,000
2,700,000
1,850,000 1,300,000
2,100,000
4,000,000
1,750,000
( 700,000)
12,500,000
9,000,000
Additional information
1. The net income for the current year was P3,050,000.
2. Cash dividend paid amounted to P2,500,000.
3. The entity sold equipment costing P200,000, with carrying
amount of P50,000, for P70,000 cash.
4. The entity issued 10,000 shares of capital for P150 per share
cash.
5. The entity sold all of its treasury shares for P900,000 cash.
6. Individuals holding P500,000 face value bonds exercised
their conversion privilege. Each of the 500 bonds was
converted into 5 shares of capital.
7. The entity purchased equipment for P1,200,000.
8. Land with a fair value of P500,000 was purchased through
the issuance of a long term note.
Required:
Prepare a statement of cash flows for the current year.
568
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