Scribd Logo
Upload

Welcome to Scribd!

  • 334 views

    Cashflow A. Indirect Method: KM Manufacturing Company

    Uploaded by

    Arnold Adano
    The document summarizes KM Manufacturing Company's statement of cash flows for the year ended December 31, 2X20 using the indirect and direct method. Under the indirect method, net income was ₱430,000 and net cash from operating activities was ₱1,222,000. Net cash used in investing activities was ₱480,000 from the purchase of equipment. Net cash used in financing activities was ₱200,000 from the payment of cash dividends. Under the direct method, cash from operating activities was ₱1,222,000, with cash collections from customers of ₱6,418,000 and cash payments to suppliers and for expenses of ₱

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd

    Cashflow A. Indirect Method: KM Manufacturing Company

    Uploaded by

    Arnold Adano
    334 views2 pages
    The document summarizes KM Manufacturing Company's statement of cash flows for the year ended December 31, 2X20 using the indirect and direct method. Under the indirect method, net income was ₱430,000 and net cash from operating activities was ₱1,222,000. Net cash used in investing activities was ₱480,000 from the purchase of equipment. Net cash used in financing activities was ₱200,000 from the payment of cash dividends. Under the direct method, cash from operating activities was ₱1,222,000, with cash collections from customers of ₱6,418,000 and cash payments to suppliers and for expenses of ₱

    Original Title

    cashflow

    Copyright

    © © All Rights Reserved

    Available Formats

    DOCX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    The document summarizes KM Manufacturing Company's statement of cash flows for the year ended December 31, 2X20 using the indirect and direct method. Under the indirect method, net income was ₱430,000 and net cash from operating activities was ₱1,222,000. Net cash used in investing activities was ₱480,000 from the purchase of equipment. Net cash used in financing activities was ₱200,000 from the payment of cash dividends. Under the direct method, cash from operating activities was ₱1,222,000, with cash collections from customers of ₱6,418,000 and cash payments to suppliers and for expenses of ₱

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    334 views2 pages

    Cashflow A. Indirect Method: KM Manufacturing Company

    Uploaded by

    Arnold Adano
    The document summarizes KM Manufacturing Company's statement of cash flows for the year ended December 31, 2X20 using the indirect and direct method. Under the indirect method, net income was ₱430,000 and net cash from operating activities was ₱1,222,000. Net cash used in investing activities was ₱480,000 from the purchase of equipment. Net cash used in financing activities was ₱200,000 from the payment of cash dividends. Under the direct method, cash from operating activities was ₱1,222,000, with cash collections from customers of ₱6,418,000 and cash payments to suppliers and for expenses of ₱

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    CASHFLOW

    A. Indirect Method

    KM Manufacturing Company
    Statement of Cash Flows - Indirect Method
    For the Year Ended, December 31, 2X20

    Cash flows from operating activities


    Net Income ₱ 430,000
    Adjustment to reconcile net income to net cash
    provided by operating activities:
    Depreciation Expense 880,000
    Loss on disposal of plant assets 24,000
    Increase in accounts receivable 165,000
    Decrease in inventory 33,000
    Increase in accounts payable 20,000 792,000
    Net cash provided by operating activities 1,222,000

    Cash flows from investing activities


    Sale of equipment 270,000
    Purchase of equipment 750,000
    Net cash used by investing activities 480,000

    Cash flows from financing activities


    B. Payment of cash dividends 200,000 Direct
    Net cash used by financing activities 200,000
    Net increase in cash 542,000
    Cash at beginning of period 130,000
    Cash at end of period 672,000

    Method
    KM Manufacturing Company
    Statement of Cash Flows - Direct Method
    For the Year Ended, December 31, 2X20

    Cash flows from operating activities


    Cash collections from customers 6,418,000
    Less: Cash payments
    To suppliers 2,757,000
    For operating expenses 2,086,000
    For income taxes 353,000 5,196,000
    Net cash provided by operating activities 1,222,000

    Cash flows from investing activities


    Sale of equipment 270,000
    Purchase of equipment 750,000
    Net cash used by investing activities 480,000
    Cash flows from financing activities
    Payment of cash dividends 200,000
    Net cash used by financing activities 200,000
    Net increase in cash 542,000
    Cash at beginning of period 130,000
    Cash at end of period 672,000

    Computation for Direct Method


    *Computation of cash collection from customer
    Sales revenue 6,583,000
    Less: Increase in accounts receivable 165,000
    Cash collection from customer 6,418,000

    *Computation of cash payment to suppliers


    Cost of good sold per income statement 2,810,000
    Less: Decrease in inventories 33,000
    Increase in accounts payable 20,000
    Cash payment to suppliers 2,757,000

    You might also like