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    Cash Flows

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    Aira Dane Villegas
    The document provides financial information for Jose Company for the years ended December 31, 2020 and 2019. This includes asset, liability and equity accounts. From this information, a statement of cash flows for the year ended December 31, 2020 was prepared. It shows net cash provided by operating activities of $463,500, net cash used in investing activities of $275,000 and net cash provided by financing activities of $25,000, resulting in a net increase in cash of $213,500 for the year.

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    Cash Flows

    Uploaded by

    Aira Dane Villegas
    55 views4 pages
    The document provides financial information for Jose Company for the years ended December 31, 2020 and 2019. This includes asset, liability and equity accounts. From this information, a statement of cash flows for the year ended December 31, 2020 was prepared. It shows net cash provided by operating activities of $463,500, net cash used in investing activities of $275,000 and net cash provided by financing activities of $25,000, resulting in a net increase in cash of $213,500 for the year.

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    Accounting

    Original Title

    CashFlows (1)

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    The document provides financial information for Jose Company for the years ended December 31, 2020 and 2019. This includes asset, liability and equity accounts. From this information, a statement of cash flows for the year ended December 31, 2020 was prepared. It shows net cash provided by operating activities of $463,500, net cash used in investing activities of $275,000 and net cash provided by financing activities of $25,000, resulting in a net increase in cash of $213,500 for the year.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    55 views4 pages

    Cash Flows

    Uploaded by

    Aira Dane Villegas
    The document provides financial information for Jose Company for the years ended December 31, 2020 and 2019. This includes asset, liability and equity accounts. From this information, a statement of cash flows for the year ended December 31, 2020 was prepared. It shows net cash provided by operating activities of $463,500, net cash used in investing activities of $275,000 and net cash provided by financing activities of $25,000, resulting in a net increase in cash of $213,500 for the year.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    of 4

    Illustrative problem - Statement of Cash Flows

    From the data below, prepare the Statement of Cash Flows for the year ended
    December 31, 2020

    Accounts 2020 2019 Increase (Decrease)


    Cash 322,500.00 109,000.00 213,500.00
    Accounts Receivable 112,000.00 100,000.00 12,000.00
    Inventories 290,000.00 270,000.00 20,000.00
    Prepaid Insurance 3,000.00 5,000.00 (2,000.00)
    Land 75,000.00 25,000.00 50,000.00
    Machinery & Equipment 1,475,000.00 1,250,000.00 225,000.00
    Accumulated Depreciation (450,000.00) (250,000.00) (200,000.00)
    Total Assets 1,827,500.00 1,509,000.00

    Accounts Payable 175,000.00 160,000.00 15,000.00


    Salaries Payable 27,000.00 30,000.00 (3,000.00)
    Taxes Payable 17,000.00 21,000.00 (4,000.00)
    Bank Loan 625,000.00 500,000.00 125,000.00
    Jose, Capital 983,500.00 798,000.00
    Total Liabilities & Equity 1,827,500.00 1,509,000.00

    Additional Information:
    1 All purchases of non-current assets were made in cash.
    2 Jose withdrew ₱100,000 cash in 2020.
    capital beg. 798,000.00
    less: withrawal 100,000.00
    net capital 698,000.00
    addional inv -
    net income 285,500.00 ?
    capital ending 983,500.00

    Accumulated Depr., Beg. 250,000.00


    Depreciation Expense, 2020 200,000.00 ?
    Accumulated Depr. End 450,000.00
    Jose Company
    Statement of Cash Flows
    For the Year ended December 31, 2020

    Cash flows from Operating activities


    Net Income ₱ 285,500.00
    Adjusments
    Depreciation expense 200,000.00
    Increase in Accounts Receivable (12,000.00)
    Increase in Merchandise Inventory (20,000.00)
    Decrease in Prepaid Insurance 2,000.00
    Increase in Accounts Payable 15,000.00
    Decrease in Salaries Payable (3,000.00)
    Decrease in Taxes Payable (4,000.00)
    Net Cash Provided by Operating Activities ₱ 463,500.00
    Cash flows from Investing Activities
    Purchase of land ₱ (50,000.00)
    Purchase of Machinery and equipment (225,000.00)
    Net Cash used in Investing Activities (275,000.00)
    Cash Flows from Financing Activities
    Additional Bank Loan ₱ 125,000.00
    Jose,Withdrawal (100,000.00)
    Net Cash Provided by Financing Activities 25,000.00
    Net increase in cash ₱ 213,500.00
    Cash balance beginning 109,000.00
    Cash balance ending ₱ 322,500.00

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