Under the indirect method, how much should be reported as cash flows from operating activities? a. P 780,000b. P 550,000c. P 600,000d. P 750,000 Sun company provided the following data for the preparation of the statementof cash flows for the current year> Increase in accounts receivable> Decrease in income tax payable> Depreciation> Net income> Gain on sale of equipment> Loss on sale of buildingP300,000170,0001,000,000250,000440,000210,000

Introduction: Statement of cash flows: All cash in and out flows are shown in statement of cash…

Answered: Under the indirect method, how much…

Under the indirect method, how much should be reported as cash flows from operating activities? a. P 780,000 b. P 550,000 c. P 600,000 d. P 750,000

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

Under the indirect method, how much should be reported as cash flows from operating activities?

a. P 780,000
b. P 550,000
c. P 600,000
d. P 750,000

Sun company provided the following data for the preparation of the statement
of cash flows for the current year
> Increase in accounts receivable
> Decrease in income tax payable
> Depreciation
> Net income
> Gain on sale of equipment
> Loss on sale of building
P
300,000
170,000
1,000,000
250,000
440,000
210,000

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