Auditing Problem

b. (243,000) d. (285,000)
For the next five questions, use the following
information: 3. How much is the net cash flow provided
by (used in) investing activities?
2016
a. (100,000) c. 200,000
2015
Cash 30,000 50,000 b. (160,000) d. (360,000)
Accounts Receivable, net 410,000
460,000 4. How much is the cash balance at the end
Inventory 300,000 320,000 of the year?
Prepaid Expenses 20,000 15,000 a. 13,000 c. 30,000
Long-Term Investments 50,000 b. 27,000 d. 90,000
25,000
Land 560,000 300,000 5. How much should be disclosed as part of
Buildings and Equipment 2,000,000 non-cash investing and financing
1,900,000
activities?
Accumulated Depreciation (800,000)
(770,000)
a. 0 c. 150,000
2,570,000 b. 147,000 d. 153,000
2,300,000
Accounts Payable 300,000 For the next three questions:
120,000
Accrued Liabilities 40,000 50,000 The movements in the cash account of ABC Co.
Bonds Payable 500,000 during 2016 are shown below:
800,000 CASH
Long-Term Note Payable 150,000 Beg. 100
0 Sales 3,000 1,900 Purchases
Common Stock, P2 par value 200,000 Interest Income 10 600 Operating
160,000 Expense
Paid-in Capital in Excess of Rent Income 135 15 Interest
Par Value 710,000 550,000 Expenses
Retained Earnings 670,000 620,000 Dividend Income 20 35 Income
2,570,000 Taxes
2,300,000 Sale of Held for Trading
Additional information about 2012 transactions and Securities 400 50 Investment In
events: FVOCI
(a) Net income was P110,000. Sale of old building 260 550 Purchase of
(b) Depreciation expense on buildings and Equipmen
equipment was Collection of non-trade note 30 65 Loan
P60,000. granted to
(c) Sold equipment with a cost of P50,000 and Employee
accumulated Proceeds from loan with
depreciation of P30,000 for cash of P17,000. A bank 800 120 Payment of loan
(d) Declared and paid cash dividends of P60,000. Borrowed
(e) Issued a P150,000 long-term note payable for Issuance of shares 485 100 Reacquisition of
buildings Shares
and equipment. 45 Dividends
(f) Purchased long-term investments for P25,000. 1,760 End
(g) Paid P300,000 on the bonds payable.
(h) Issued 20,000 shares of P2 par value common 6. How much is the cash flows from
stock for operating activities?
P200,000. a. 615 c. 1,005
(i) Purchased land for P260,000. b. 650 d. 1,015

1. How much is the net cash flow provided 7. How much is the cash flows from
by (used in) operating activities? investing activities?
a. 62,000 c. 405,000 a. 175 c. (325)
b. (62,000) d. 408,000 b. 225 d. (375)

2. How much is the net cash flow provided 8. How much is the cash flow from
by (used in) financing activities? financing activites?
a. (8,000) c. (268,000) a. 1,020 c. 1,120
 b. 1,065 d. 1,165 b. 1,200 d. 2,020

ABC Co. had the following`g information during 12.How much is the cash payments for the
2016: acquisition of property, plant, and
equipment?
Accounts receivable, January 1, 2016
a. 900 c. 4,195
600
Accounts receivable, December 31, 2016 b. 1,205 d. 4,500
400
Sales on account and cash sales 13.The information in a statement of cash
8,000 flows should help investors, creditors,
Bad debts expense 200 and others evaluate all of the following
Accounts payable, January 1, 2016 about an entity except:
350 a. The entitys ability to generate
Accounts payable, December 31, 2016 future cash flows.
200 b. The entitys ability to pay
Cost of Sales 4,000
dividends and meet obligations.
Increase in inventory 900
Operating expenses on accrual basis
c. The reasons for the differences
1,220 between net income and net cash
Increase in accrued operating expenses provided (used) by financing
410 activities.
Decrease in prepaid operating expenses d. The cash investing and financing
390 transactions during the period.
Property, plant, and equipment, 1/1/16
1,800 14.The settlement of a debt by issuing
Property, plant, and equipment, 12/31/16 common stock is considered
2,700
a. A financing activity.
Additional information:
b. An investing activity.
There were no write-offs of accounts c. An operating activity.
receivable during the year. d. A noncash transaction.
Equipment with an accumulated depreciation
of P 200 was sold during the year of P 120 15.Which of the following is deducted from
resulting to a gain on sale of P 15. net income in converting net income to
net cash provided by operating
9. How much is the cash receipts from activities?
customers? a. Depreciation expense.
a. 7,800 c. 8,200 b. Gain on sale of plant assets.
b. 8,000 d. 8,400 c. Decrease in accounts receivable.
d. Increase in accounts payable.
10.How much is the cash payments to
suppliers? 16. All of the following are used in preparing
a. 3,250 c. 4,750 a statement of cash flows except:
b. 4,150 d. 5,050 a. A trial balance.
b. Comparative balance sheets.
11.How much is the cash payments for c. Current income statement.
operating expenses? d. Additional information.
a. 420 c. 1,240