REQUIRED: 1. Prepare a forecast cash flow statement fur 2020,

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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183
Excrcise 5-7
The beginning and ending balances in cach of the balance sheet accounts
of the Mexico Company are as follows:
Dec. 31, 2019
P260,000
180,000
400,000
Dec. 31, 2020
P100,000
360,000
460,000
Cash
Accounts receivable
Inventory
Prepaid insurance
Total current assets
50,000
P890,000
P1,200,000
30,000
P950,000
P1,500,000
1,400,000
(500,000)
P2,400,000
Land
Plant & equipment
Accumulated depreciation
Total non-current assets
1,000,000
(400,000)
P1,800,000
Total assets
P2,690,000
Р3,350,000
======s
Accounts payable
Accrued operating expenses
Interest payable
Income taxes payable
Tota! current liabilities
Bonds payable
Common stock
Retained earnings
Р 300,000
200,000
20,000
122.000
Р 642,000
600,000
800,000
648.000
P 260,000
132,000
30,000
150,000
P 572,000
700,000
1,100,000
978,003
Total liabilities & equity
P2,690,000
Р3,350,000
=====%=
===== =
The foreçast income statement for the Mexico Company for 2020 is
presented below:
Sales
Cost of sales
Gross profit
Operating expenses
P2,500,000
1,400,000
P1,100,000
300,000
P 800,000
Income before interest & tax
Interest expense
Income before tax
50,000
P 750,000
300,000
P 450,000
Income tax
Net income
=======
REQUIRED:
1. Prepare a forccast cash flow statement for 2020.
Transcribed Image Text:183 Excrcise 5-7 The beginning and ending balances in cach of the balance sheet accounts of the Mexico Company are as follows: Dec. 31, 2019 P260,000 180,000 400,000 Dec. 31, 2020 P100,000 360,000 460,000 Cash Accounts receivable Inventory Prepaid insurance Total current assets 50,000 P890,000 P1,200,000 30,000 P950,000 P1,500,000 1,400,000 (500,000) P2,400,000 Land Plant & equipment Accumulated depreciation Total non-current assets 1,000,000 (400,000) P1,800,000 Total assets P2,690,000 Р3,350,000 ======s Accounts payable Accrued operating expenses Interest payable Income taxes payable Tota! current liabilities Bonds payable Common stock Retained earnings Р 300,000 200,000 20,000 122.000 Р 642,000 600,000 800,000 648.000 P 260,000 132,000 30,000 150,000 P 572,000 700,000 1,100,000 978,003 Total liabilities & equity P2,690,000 Р3,350,000 =====%= ===== = The foreçast income statement for the Mexico Company for 2020 is presented below: Sales Cost of sales Gross profit Operating expenses P2,500,000 1,400,000 P1,100,000 300,000 P 800,000 Income before interest & tax Interest expense Income before tax 50,000 P 750,000 300,000 P 450,000 Income tax Net income ======= REQUIRED: 1. Prepare a forccast cash flow statement for 2020.
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