ACP - Quiz-On-Cash-Flow - For-Posting

ACC415/416/417
ACP41
QUIZ ON STATEMENT OF CASH FLOWS
Use the following information for questions 1 through 3.

Jamison Corp.'s statement of financial position accounts as of December 31, 2016 and 2015 and
information relating to 2016 activities are presented below.
December 31,
2016 2015
Assets
Plant assets P3,400,000 P2,000,000 Accumulated depreciation (900,000) (900,000)
Patent 180,000 200,000 Long-term investments 400,000 600,000 Inventory 1,380,000
1,200,000 Accounts receivable (net) 1,020,000 1,020,000 Short-term investments
600,000 — Cash 440,000 200,000
Total assets P6,520,000 P4,320,000 Equity and Liabilities
Share capital-ordinary, P10 par P1,600,000 P1,400,000 Share premium-ordinary
800,000 500,000 Retained earnings 1,880,000 980,000 Notes payable (nontrade)
580,000 — Accounts payable and accrued liabilities 1,660,000 1,440,000 Total equity
and liabilities P6,520,000 P4,320,000
Information relating to 2016 activities:

∙ Net income for 2016 was P1,500,000.
∙ Cash dividends of P600,000 were declared and paid in 2016.
∙ Equipment costing P1,000,000 and having a carrying amount of P320,000 was sold in 2016 for
P360,000.
∙ A long-term investment was sold in 2016 for P320,000. There were no other transactions
affecting long-term investments in 2016.
∙ 20,000 ordinary shares were issued in 2016 for P25 a share.
∙ Short-term investments consist of treasury bills maturing on 6/30/17.
1. Net cash provided by Jamison’s 2016 operating activities was
2. Net cash used in Jamison’s 2016 investing activities was
3. Net cash provided by Jamison’s 2016 financing activities was
4. Foxx Corp.'s comparative statement of financial position at December 31, 2016 and 2015
reported accumulated depreciation balances of P800,000 and P600,000, respectively.
Property with a cost of P50,000 and a carrying amount of P38,000 was the only property
sold in 2016. Depreciation charged to operations in 2016 was
.
ACC415/416/417
ACP41
5. Nagel Co.'s prepaid insurance was P90,000 at December 31, 2016 and P45,000 at
December 31, 2015. Insurance expense was P36,000 for 2016 and P27,000 for 2015.
What amount of cash disbursements for insurance would be reported in Nagel's 2016 net
cash provided by operating activities presented on a direct basis?
Use the following information for questions 6 and 7.
A company acquired a building, paying a portion of the purchase price in cash and issuing a
mortgage note payable to the seller for the balance.
6. In a statement of cash flows, what amount is included in investing activities for the above
transaction?
a. Cash payment
b. Acquisition price
c. Zero
d. Mortgage amount
7. In a statement of cash flows, what amount is included in financing activities for the above
transaction?
a. Cash payment
b. Acquisition price
c. Zero
d. Mortgage amount

Smiley Corp.'s transactions for the year ended December 31, 2016 included the
following: ∙ Purchased real estate for P550,000 cash which was borrowed from a bank. ∙
Sold non-trading investments for P500,000.
∙ Paid dividends of P600,000.
∙ Issued 500 ordinary shares for P250,000.
∙ Purchased machinery and equipment for P125,000 cash.
∙ Paid P450,000 toward a bank loan.
∙ Reduced accounts receivable by P100,000.
∙ Increased accounts payable P200,000.
8. Smiley's net cash used in investing activities for 2016 was
9. Smiley's net cash used in financing activities for 2016 was

Peavy Corp.'s transactions for the year ended December 31, 2016 included the following:
∙ Acquired 50% of Gant Corp.'s ordinary shares for P180,000 cash which was borrowed from a
bank.
ACC415/416/417
ACP41
∙ Issued 5,000 of its preference shares for land having a fair value of P320,000. ∙
Issued 500 of its 11% debenture bonds, due 2016, for P392,000 cash. ∙
Purchased a patent for P220,000 cash.
∙ Paid P120,000 toward a bank loan.
∙ Sold non-trading investments for P796,000.
∙ Had a net increase in returnable customer deposits (long-term) of P88,000.
10. Peavy’s net cash provided by investing activities for 2016 was
11. Peavy’s net cash provided by financing activities for 2016 was
12. Which of the following events will appear in the cash flows from financing activities section
of the statement of cash flows?
a. Cash purchases of equipment.
b. Cash purchases of bonds issued by another company.
c. Cash received as repayment for funds loaned.
d. Cash purchase of treasury stock.
13. Making and collecting loans and disposing of property, plant, and equipment are
a. operating activities.
b. investing activities.
c. financing activities.
d. liquidity activities.
14. In preparing a statement of cash flows, sale of treasury stock at an amount greater than
cost would be classified as a(n)
a. operating activity.
b. financing activity.
c. extraordinary activity.
d. investing activity.
15. In preparing a statement of cash flows, which of the following transactions would be
considered an investing activity?
a. Sale of equipment at book value
b. Sale of merchandise on credit
c. Declaration of a cash dividend
d. Issuance of bonds payable at a discount

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ACC415/416/417

Use the following information for questions 1 through 3.

Information relating to 2016 activities:

1. Net cash provided by Jamison’s 2016 operating activities was

2. Net cash used in Jamison’s 2016 investing activities was

3. Net cash provided by Jamison’s 2016 financing activities was

Use the following information for questions 8 and 9.

8. Smiley's net cash used in investing activities for 2016 was

9. Smiley's net cash used in financing activities for 2016 was

Use the following information for questions 10 and 11.

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