Troy Merchandising had cash and cash equivalents at January 1, 2020 of P400,000. The transactions and some financial information of Troy Merchandising for the year ended December 31, 2020 are as follows: Borrowed P850,000 with a 9-month loan payable Generated P50,000 income for selling fixed asset with a book value of P310,000. ● Invested additional P480,000 cash ● ● ● ● ● ● ● Cash payments for supplier's accounts P6,300,000 Wages Expense shown in the statement of profit or loss is P75,000. At the end of the year, the statement of financial position shows Prepaid Wages Expense of P65,000. There was a Prepaid Wages Expense of P35,000 at the beginning of the year. Accounts Receivable as of January 1, 2020 is P5,100,000 and decreased by P650,000 at the end of the year. • • Purchased a plant asset for P650,000; P237,500 in cash and P412,500 in loan Received P25,000 interest from term deposit Invested P500,000 cash on the short-term money market Paid fixed-term loan principal of P900,000 and interest of P90,000 Withdrew P200,000 cash during the year Received P340,000 in advance from customers ● Trade Accounts Payable as of January 1, 2020 is P4,800,000 Net Sales for the year amounted to P5,350,000. REQUIRED: Prepare the statement of cash flows ( of Troy Merchandising for the year ended December 31, 2020 using the direct method approach.
Troy Merchandising had cash and cash equivalents at January 1, 2020 of P400,000. The transactions and some financial information of Troy Merchandising for the year ended December 31, 2020 are as follows: Borrowed P850,000 with a 9-month loan payable Generated P50,000 income for selling fixed asset with a book value of P310,000. ● Invested additional P480,000 cash ● ● ● ● ● ● ● Cash payments for supplier's accounts P6,300,000 Wages Expense shown in the statement of profit or loss is P75,000. At the end of the year, the statement of financial position shows Prepaid Wages Expense of P65,000. There was a Prepaid Wages Expense of P35,000 at the beginning of the year. Accounts Receivable as of January 1, 2020 is P5,100,000 and decreased by P650,000 at the end of the year. • • Purchased a plant asset for P650,000; P237,500 in cash and P412,500 in loan Received P25,000 interest from term deposit Invested P500,000 cash on the short-term money market Paid fixed-term loan principal of P900,000 and interest of P90,000 Withdrew P200,000 cash during the year Received P340,000 in advance from customers ● Trade Accounts Payable as of January 1, 2020 is P4,800,000 Net Sales for the year amounted to P5,350,000. REQUIRED: Prepare the statement of cash flows ( of Troy Merchandising for the year ended December 31, 2020 using the direct method approach.
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter11: The Statement Of Cash Flows
Section: Chapter Questions
Problem 32BE
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