Problem 2 The Taehyung Company reported the following condense profit or loss for 2020: P1,000,000 580,000 P 420,000 Sales Less: Cost of Goods Sold Gross Profit Less: Operating expenses Depreciation expense Salaries Expense Profit P 80,000 120,000 Cash Accounts receivable Inventories Accounts payable (trade) Salaries payable 200,000 P 220,000 During 2020, the following changes occurred in the company's current assets and current liabilities: Increase (Decrease) 37,000 (50,000) 89,000 (46,000) 24,000 Instruction: Prepare the operating activities section of Taehyung Company's Statement of Cash Flows for the year ended 2020 using (a) indirect method and (b) direct method.
Problem 2 The Taehyung Company reported the following condense profit or loss for 2020: P1,000,000 580,000 P 420,000 Sales Less: Cost of Goods Sold Gross Profit Less: Operating expenses Depreciation expense Salaries Expense Profit P 80,000 120,000 Cash Accounts receivable Inventories Accounts payable (trade) Salaries payable 200,000 P 220,000 During 2020, the following changes occurred in the company's current assets and current liabilities: Increase (Decrease) 37,000 (50,000) 89,000 (46,000) 24,000 Instruction: Prepare the operating activities section of Taehyung Company's Statement of Cash Flows for the year ended 2020 using (a) indirect method and (b) direct method.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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STATEMENT OF
Transcribed Image Text:Problem 2
The Taehyung Company reported the following condense profit or loss for 2020:
P1,000,000
580,000
P 420,000
Sales
Less: Cost of Goods Sold
Gross Profit
Less: Operating expenses
Depreciation expense
Salaries Expense
Profit
P 80,000
120,000
Cash
Accounts receivable
Inventories
Accounts payable (trade)
Salaries payable
200,000
P 220,000
During 2020, the following changes occurred in the company's current assets and current
liabilities:
Increase (Decrease)
37,000
(50,000)
89,000
(46,000)
24,000
Instruction: Prepare the operating activities section of Taehyung Company's Statement of Cash
Flows for the year ended 2020 using (a) indirect method and (b) direct method.
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