Illustration:ABC Co.'s cash balance on January 1 2018 was P 20 000 The following were the transactionsthat affected cash during the perioda. Collections from customers for the sale of goods,b. Cash receipt from loan obtained from a bank,c. Cash receipt from additional investment by owner,d. Payments to suppliers for the purchase of inventory,e. Payments for employee salaries,f. Payments for rent expenses,g. Payment for utilities expense,h. Payment for the acquisition of equipment,i. Cash disbursements for drawings by owner,Required: Prepare the statement of cash flowsfrom operating activitiesPlease be guided by the rubric below:ACTIVITY No.RE2016128P 580 000P 180 000P 20 000P 120 000P 140 00070 000PP 20 000P 200 000P 60 000the direct method of presenting cash flowsDESCRIPTIONThe financial position is presented properly, and theamounts are correctThe financial position is presented properly, and theamounts have few errorsThe financial position is presented properly, but there area lot of errors in the amountsThe financial position is not presented properly, but thereare a lot of errors in the amounts

Statement of cash flows is one of the financial statement being prepared in business for analysing…

ABC Co.'s cash balance on January 1 2018 was P 20 000 The following were the transactions that affected cash during the period a. Collections from customers for the sale of goods, b. Cash receipt from loan obtained from a bank, c. Cash receipt from additional investment by owner, d. Payments to suppliers for the purchase of inventory, e. Payments for employee salaries, f. Payments for rent expenses, g. Payment for utilities expense, h. Payment for the acquisition of equipment, i. Cash disbursements for drawings by owner, P 580 000 P 180 000 P 20 000 P 120 000 P 140 000 P 70 000 P 20 000 P 200 000 P 60 000 Required: Prepare the statement of cash flows Use the direct method of presenting cash flows from operating activities

ABC Co.'s cash balance on January 1 2018 was P 20 000 The following were the transactions that affected cash during the period a. Collections from customers for the sale of goods, b. Cash receipt from loan obtained from a bank, c. Cash receipt from additional investment by owner, d. Payments to suppliers for the purchase of inventory, e. Payments for employee salaries, f. Payments for rent expenses, g. Payment for utilities expense, h. Payment for the acquisition of equipment, i. Cash disbursements for drawings by owner, P 580 000 P 180 000 P 20 000 P 120 000 P 140 000 P 70 000 P 20 000 P 200 000 P 60 000 Required: Prepare the statement of cash flows Use the direct method of presenting cash flows from operating activities

Financial Accounting

15th Edition

ISBN:9781337272124

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter16: Statement Of Cash Flows

Section: Chapter Questions

Problem 21E

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