Statement of Cash Flows
(FAR.2643)
R. R. Ocampo
Relevant Standard
PAS 7 – Statement of Cash Flows
SCF presentation issue
RELATED ACCOUNTS
• Operating • Working capital items (CA,CL)
No. 8 - 12 • Others not related to Investing
and Financing
• Investing • Noncurrent assets (PPE,IA)
No. 13 - 15 • Investments (except trading)
• Financing • Equity items
• Borrowings
No. 16 & 17
Comprehensive No. 18 - 26
Interest and Dividend
CASH FLOW USUALLY ALTERNATIVELY
• Interest paid • Operating • Financing
• Interest and • Operating • Investing
dividend
received
• Dividend paid • Financing • Operating
Problem No. 8 Answer is letter A
Financing
+
Investing
-
-
Financing
-
Investing
Problem No. 10 Answer is letter C
+
+
+
Simple Guide:
Decrease
Increase in Operating CA/ 50,000 -
Non-cash income – DEDUCT
-
Increase in Operating CL/ Increase
Non-cash expense - ADD 350,000 -
Decrease
100,000 +
Increase
300,000 +
Problem No. 10 Answer is letter C
+
+
Decrease
50,000 -
-
Increase
350,000 -
Decrease
100,000 +
Increase
300,000 +
Problem No. 12 Answer is letter A
Net income P10,000,000 +
Investing
+
Problem No. 13 Answer is letter A
Gain on sale P 7,000
Carrying amount
(P35,000 – P16,800) 18,200
Proceeds from sale of equip. 25,200
Payment for equipment ( 28,000)
Cash used in investing (P 2,800)
Problem No. 14 Answer is letter A
Purchase of FA@FVTOCI (P3.0M)
Purchase of short term investment ( 5.0M)
Cash used in investing (P8.0M)
Problem No. 16 Answer is letter C
Investing
-
Operating
Investing
Problem No. 17 Answer is letter A
Investing
Investing
+
Operating
3,000,000 -
Operating
Operating Investing Financing
a. P59,200 b. (98,000) d. 37,100
c. ( 7,400) f. 7,000 h. (36,000)
e. 4,500 k. ( 9,600) m. 18,000
g. 12,600
i. ( 5,300)
j. 3,700
l. 1,900
n. 5,000
p. ( 2,300)
71,900 (100,600) 19,100
Ans. #18 D Ans. #19 C Ans. #20 A
Problem No. 21 Answer is letter D
Cash provided by operating P 71,900
Cash used in investing ( 100,600)
Cash provided by financing 19,100
Net decrease in cash (P 9,600)
Cash balance beginning (q) P20,300
Net decrease in cash ( 9,600)
Cash balance ending P10,700
Answer No. 22 is B
Problem No. 25
Proceeds sale of equipment P 10,000
Purchase of equipment ( ?)
Purchase of Equipment
Buildings and Equipment
12/31/17 - 375,000 25,000 Disposal +
Purchase ?
12/31/18 450,000 +
Purchase of Equipment
Buildings and Equipment
12/31/17 - 375,000 25,000 Disposal +
Purchase 100,000
12/31/18 450,000 +
Proceeds sale of equipment P 10,000
Purchase of equipment ( 100,000)
Cash used in investing (P 90,000)
Answer No. 25 is letter C
Problem No. 26 Answer is letter C
Dividends paid (P 50,000)
Decrease in NP-Bank ( 200,000)
Increase in mortgage payable 150,000
Cash used in financing (P100,000)
Problem No. 24 Answer is letter C
Cash provided by operating P140,000
P ?
Cash used in investing ( 90,000)
Cash used in financing ( 100,000)
Net decrease in cash (P 50,000)
Problem No. 24
Net income P ?
Retained earnings
12/31/17 + 75,000 165,000? Net income
Dividends + 50,000
40,000 12/31/18 +
Problem No. 24
Net income P165,000
Loss on sale of equipment 10,000
Depreciation expense ?
Retained earnings
12/31/17 + 75,000 165,000? Net income
Dividends + 50,000
40,000 12/31/18 +
Problem No. 24
Net income P165,000
Loss on sale of equipment 10,000
Depreciation expense ?
Accumulated Depreciation
Disposal + 5,000 40,000 Beginning -
55,000
? Depreciation
90,000 Ending +
Problem No. 24 Answer is letter C
Net income P165,000
Loss on sale of equipment 10,000
Depreciation expense 55,000
Increase in AR ( 75,000)
Increase in inventory (125,000)
Decrease in prepaid expenses 75,000
Increase in AP 65,000
Decrease in accrued expenses ( 30,000)
Cash provided by operating P140,000
DIY Drill Answers
1. C
2. D
3. A
4. B
5. B
6. D
7. C
8. A
9. A
10. A
End
