4. Pro-forma Statement of Cash Flows Sugbu Company presents these data to be used as basis for the pro-forma Statement of Cash Flows. 1) Customer sales receipts for P 870,000 2) Purchase of machinery and equipment for P 125,000 cash. 3) Settlement of income taxes of P 110,000 4) Sale of investment securities for P 500,000. 5) Payment of dividends of P 600,000. 6) Receipt of rentals of P 105,000. 7) Issuance of 500 shares of common stock for P 250,000. 8) Payment of P 100,000 due to suppliers and payroll to employees. 9) Purchase of land for plant site for P 550,000 cash that was borrowed from a bank. 10) Payment of P 450,000 for treasury shares. REQUIRED: Determine the projected amounts of the following: A) Net cash provided by operating activities B) Net cash used in investing activities 5. Expected Value SDA Company prepared the following probability distribution describing the relative likelihood of monthly sales volume levels and related profit (loss) for its lone product that sells for P 50 per unit: Sales volume Probability Profit (Loss) 10% (P 70,000) 10,000 20% 60,000 5,000 12,000 18,000 24,000 30,000 40% 20% 10% C) Net cash used in financing activities D) Net cash increase or decrease REQUIRED: Using the expected value approach, A) How much is the budgeted sales for the month? B) What is the expected value of the monthly profit? 100,000 140,000
4. Pro-forma Statement of Cash Flows Sugbu Company presents these data to be used as basis for the pro-forma Statement of Cash Flows. 1) Customer sales receipts for P 870,000 2) Purchase of machinery and equipment for P 125,000 cash. 3) Settlement of income taxes of P 110,000 4) Sale of investment securities for P 500,000. 5) Payment of dividends of P 600,000. 6) Receipt of rentals of P 105,000. 7) Issuance of 500 shares of common stock for P 250,000. 8) Payment of P 100,000 due to suppliers and payroll to employees. 9) Purchase of land for plant site for P 550,000 cash that was borrowed from a bank. 10) Payment of P 450,000 for treasury shares. REQUIRED: Determine the projected amounts of the following: A) Net cash provided by operating activities B) Net cash used in investing activities 5. Expected Value SDA Company prepared the following probability distribution describing the relative likelihood of monthly sales volume levels and related profit (loss) for its lone product that sells for P 50 per unit: Sales volume Probability Profit (Loss) 10% (P 70,000) 10,000 20% 60,000 5,000 12,000 18,000 24,000 30,000 40% 20% 10% C) Net cash used in financing activities D) Net cash increase or decrease REQUIRED: Using the expected value approach, A) How much is the budgeted sales for the month? B) What is the expected value of the monthly profit? 100,000 140,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:4. Pro-forma Statement of Cash Flows
Sugbu Company presents these data to be used as basis for the pro-forma Statement of Cash Flows.
1) Customer sales receipts for P 870,000
2) Purchase of machinery and equipment for P 125,000 cash.
3) Settlement of income taxes of P 110,000
4) Sale of investment securities for P 500,000.
5) Payment of dividends of P 600,000.
6) Receipt of rentals of P 105,000.
7) Issuance of 500 shares of common stock for P 250,000.
8) Payment of P 100,000 due to suppliers and payroll to employees.
9) Purchase of land for plant site for P 550,000 cash that was borrowed from a bank.
10) Payment of P 450,000 for treasury shares.
REQUIRED: Determine the projected amounts of the following:
A) Net cash provided by operating activities
B) Net cash used in investing activities
5. Expected Value
SDA Company prepared the following probability distribution describing the relative likelihood of monthly
sales volume levels and related profit (loss) for its lone product that sells for P 50 per unit:
Sales volume Probability
Profit (Loss)
10%
20%
40%
20%
10%
5,000
12,000
18,000
24,000
30,000
C) Net cash used in financing activities
D) Net cash increase or decrease
REQUIRED: Using the expected value approach,
A) How much is the budgeted sales for the month?
B) What is the expected value of the monthly profit?
(P 70,000)
10,000
60,000
100,000
140,000
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