The transactions of A Company for the current year included the following: Cash borrowed from bank for purchase of land P6,000,000 Purchase of land for cash 6,000,000 Sale of securities for cash 1,000,000 Dividend declared (of which P2,000,000 was paid during the year) 3,000,000 Issuance of ordinary shares for cash 7,000,000 Payment of bank loan including interest of P500,000 3,500,000 Increase in customers’ deposits 500,000 The current year statement of cash flows should report net cash provided by financing activities at

The transactions of A Company for the current year included the following: Cash borrowed from bank for purchase of land P6,000,000 Purchase of land for cash 6,000,000 Sale of securities for cash 1,000,000 Dividend declared (of which P2,000,000 was paid during the year) 3,000,000 Issuance of ordinary shares for cash 7,000,000 Payment of bank loan including interest of P500,000 3,500,000 Increase in customers’ deposits 500,000 The current year statement of cash flows should report net cash provided by financing activities at

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

The transactions of A Company for the current year included the following:

Cash borrowed from bank for purchase of land	P6,000,000
Purchase of land for cash	6,000,000
Sale of securities for cash	1,000,000
Dividend declared (of which P2,000,000 was paid during the year)	3,000,000
Issuance of ordinary shares for cash	7,000,000
Payment of bank loan including interest of P500,000	3,500,000
Increase in customers’ deposits	500,000

The current year statement of cash flows should report net cash provided by financing activities at

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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