Required: Determine the following:Total net cash flowNet cash flow from operatingNet cash flow from investingNet cash flow from financing II.The following changes in the statement of financial position accounts of BC were gathered for preparation ofStatement on Cash Flow:Increase (Decrease)Cash270,000Short-term investment200,000Accounts receivable(20,000)Inventory100,000Noncurrent investment(100,000)Equipment700,000Accumulated depreciation - increase50,000Accounts payable(5,000)Dividends payable160,000Short-term notes, non-trade300,000Long-term debts130,000Ordinary share, P10 par150,000Share premium (APIC)75,000Accumulated profits290,000The following additional information relates to the same year:a. Net income was P1,090,000.b. Cash dividend declared was P800,000.c. Equipment costing P600,000 and having carrying cost of P350,000 was sold for P350,000.Required: Determine the following:1. Total net cash flow2. Net cash flow from operating3. Net cash flow from investing4. Net cash flow from financing

Cash flow statement means the statement which shows the movement of cash in flow and out flow under…

Answered: Required: Determine the following:…

Required: Determine the following: Total net cash flow Net cash flow from operating Net cash flow from investing Net cash flow from financing

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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Question

Required: Determine the following:

Total net cash flow
Net cash flow from operating
Net cash flow from investing
Net cash flow from financing

II.
The following changes in the statement of financial position accounts of BC were gathered for preparation of
Statement on Cash Flow:
Increase (Decrease)
Cash
270,000
Short-term investment
200,000
Accounts receivable
(20,000)
Inventory
100,000
Noncurrent investment
(100,000)
Equipment
700,000
Accumulated depreciation - increase
50,000
Accounts payable
(5,000)
Dividends payable
160,000
Short-term notes, non-trade
300,000
Long-term debts
130,000
Ordinary share, P10 par
150,000
Share premium (APIC)
75,000
Accumulated profits
290,000
The following additional information relates to the same year:
a. Net income was P1,090,000.
b. Cash dividend declared was P800,000.
c. Equipment costing P600,000 and having carrying cost of P350,000 was sold for P350,000.
Required: Determine the following:
1. Total net cash flow
2. Net cash flow from operating
3. Net cash flow from investing
4. Net cash flow from financing

Definition Definition Net amount of cash that an entity receives and expends over the course of a given period. For a business to continue operating, positive cash flows are required, and they are also necessary to produce value for investors. Investors in particular prefer to see growing cash flows even after capital expenditures have been paid for (which is known as free cash flow).

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