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ABAKA Co. reported the following differences in the statement of financial position accounts on December 31, 2023 and 2022.     Additional information: - Net income for the current year was P1,900,000 - During 2023, ABAKA Co. purchased trading securities for P900,000 cash and sold trading securities costing P500,000 for P800,000. On December 31, 2023, the market value of the remaining trading securities increased to P500,000. - Cash dividend of P500,000 was declared. - Equipment costing P800,000 and having a carrying amount of P550,000 was sold for P650,000. - Equipment costing P3,000,000 was acquired through issuance of long-term debt. - The long-term investment pertains to 20% common stock investment in SANDALS Corp. which was purchased on December 31, 2022. SANDALS Corp. reported 2023 net income at P5,000,000 and declared and paid dividends of P500,000. - 100,000 ordinary shares were issued for P20.   Requirements: Determine the net cash provided by: a) Operating activities b) Investing activities c) Financing activities

ABAKA Co. reported the following differences in the statement of financial position accounts on December 31, 2023 and 2022.     Additional information: - Net income for the current year was P1,900,000 - During 2023, ABAKA Co. purchased trading securities for P900,000 cash and sold trading securities costing P500,000 for P800,000. On December 31, 2023, the market value of the remaining trading securities increased to P500,000. - Cash dividend of P500,000 was declared. - Equipment costing P800,000 and having a carrying amount of P550,000 was sold for P650,000. - Equipment costing P3,000,000 was acquired through issuance of long-term debt. - The long-term investment pertains to 20% common stock investment in SANDALS Corp. which was purchased on December 31, 2022. SANDALS Corp. reported 2023 net income at P5,000,000 and declared and paid dividends of P500,000. - 100,000 ordinary shares were issued for P20.   Requirements: Determine the net cash provided by: a) Operating activities b) Investing activities c) Financing activities

Financial Accounting: The Impact on Decision Makers
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter10: Long-term Liabilities
Section: Chapter Questions
Problem 10.10E
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ABAKA Co. reported the following differences in the statement of financial position accounts on December 31, 2023 and 2022.

 

 

Additional information:

- Net income for the current year was P1,900,000

- During 2023, ABAKA Co. purchased trading securities for P900,000 cash and sold trading securities costing P500,000 for P800,000. On December 31, 2023, the market value of the remaining trading securities increased to P500,000.

- Cash dividend of P500,000 was declared.

- Equipment costing P800,000 and having a carrying amount of P550,000 was sold for P650,000.

- Equipment costing P3,000,000 was acquired through issuance of long-term debt.

- The long-term investment pertains to 20% common stock investment in SANDALS Corp. which was purchased on December 31, 2022. SANDALS Corp. reported 2023 net income at P5,000,000 and declared and paid dividends of P500,000.

- 100,000 ordinary shares were issued for P20.

 

Requirements:

Determine the net cash provided by:

a) Operating activities

b) Investing activities

c) Financing activities

 

 

 

ASSETS Cash and cash equivalents Trading securities Accounts receivable Allowance for doubtful accounts Inventory Long-term investments Property, plant and equipment Accumulated depreciation Patent, net Total assets LIABILITIES AND SHAREHOLDERS' EQUITY Accounts payable and accrued liabilities Dividend payable Short-term bank debt Long-term debt Deferred tax liability Ordinary share capital, P10 par Share premium Retained earnings Total liabilities and shareholders' equity 2023 7,200,000 500,000 2,300,000 (300,000) 5,600,000 2,900,000 15,000,000 (3,600,000) 2,000,000 31,600,000 5,600,000 100,000 3,000,000 2,000,000 900,000 5,000,000 3,000,000 12,000,000 31,600,000 2022 6,000,000 1,100,000 (100,000) 4,300,000 2,000,000 10,000,000 (3,100,000) 2,500,000 22,700,000 5,400,000 3,500,000 200,000 4,000,000 2,000,000 7,600,000 22,700,000
Transcribed Image Text:ASSETS Cash and cash equivalents Trading securities Accounts receivable Allowance for doubtful accounts Inventory Long-term investments Property, plant and equipment Accumulated depreciation Patent, net Total assets LIABILITIES AND SHAREHOLDERS' EQUITY Accounts payable and accrued liabilities Dividend payable Short-term bank debt Long-term debt Deferred tax liability Ordinary share capital, P10 par Share premium Retained earnings Total liabilities and shareholders' equity 2023 7,200,000 500,000 2,300,000 (300,000) 5,600,000 2,900,000 15,000,000 (3,600,000) 2,000,000 31,600,000 5,600,000 100,000 3,000,000 2,000,000 900,000 5,000,000 3,000,000 12,000,000 31,600,000 2022 6,000,000 1,100,000 (100,000) 4,300,000 2,000,000 10,000,000 (3,100,000) 2,500,000 22,700,000 5,400,000 3,500,000 200,000 4,000,000 2,000,000 7,600,000 22,700,000
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