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REQUIRED: 1. Prepare a forecast cash flow statoment for 2020,

REQUIRED: 1. Prepare a forecast cash flow statoment for 2020,

FINANCIAL ACCOUNTING
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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The beginning and ending balances in each of the balance sheet accounts of the Mexico Company are as follows: Dec. 31, 2020 P100,000 360,000 460,000 30,000 P950,000 P1,500,000 1,400,000 (500,000) P2,400,000 Dec. 31, 2019 P260,000 180,000 Cash Accounts receivable 400,000 50,000 P890,000 P1,200,000 1,000,000 (400,000) P1,800,000 Inventory Prepaid insurance Total current assets Land Plant & equipment Accumulated depreciation Total non-current assets Total assets P2,690,000 P3,350,000 P 260,000 132,000 30,000 P 300,000 200,000 20,000 122,000 P 642,000 600,000 800,000 648,000 Accounts payable Accrued operating expenses Interest payable Income taxes payable 150,000 P 572,000 700,000 1,100,000 978,000 Total current liabilities Bonds payable Common stock Retained earnings P2,690,000 P3,350,000 Total liabilities & equity The forecast income statenent for the Mexico Company for 2020 is presented below: P2,500,000 1,400,000 P1,100,000 300,000 P 800,000 50,000 P 750,000 Sales Cost of sales Gross profit Operating expenses Income before interest & tax Interest expense Income before tax 300,000 P 450,000 Income tax Net income REQUIRED: 1. Prepare a forccast cash flow statcnent for 2020,
Transcribed Image Text:The beginning and ending balances in each of the balance sheet accounts of the Mexico Company are as follows: Dec. 31, 2020 P100,000 360,000 460,000 30,000 P950,000 P1,500,000 1,400,000 (500,000) P2,400,000 Dec. 31, 2019 P260,000 180,000 Cash Accounts receivable 400,000 50,000 P890,000 P1,200,000 1,000,000 (400,000) P1,800,000 Inventory Prepaid insurance Total current assets Land Plant & equipment Accumulated depreciation Total non-current assets Total assets P2,690,000 P3,350,000 P 260,000 132,000 30,000 P 300,000 200,000 20,000 122,000 P 642,000 600,000 800,000 648,000 Accounts payable Accrued operating expenses Interest payable Income taxes payable 150,000 P 572,000 700,000 1,100,000 978,000 Total current liabilities Bonds payable Common stock Retained earnings P2,690,000 P3,350,000 Total liabilities & equity The forecast income statenent for the Mexico Company for 2020 is presented below: P2,500,000 1,400,000 P1,100,000 300,000 P 800,000 50,000 P 750,000 Sales Cost of sales Gross profit Operating expenses Income before interest & tax Interest expense Income before tax 300,000 P 450,000 Income tax Net income REQUIRED: 1. Prepare a forccast cash flow statcnent for 2020,
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