\ Susan Company proivided the following

2021 2020
Cash and cash equivalents 1,150,000 880,000
Accounts receivable, net 820,000 950,000
Inventory 1,180,000 1,100,000
Prepaid expense 40,000 60,000
Property, plant and equipment 4,000,000 2,000,000
Accumulated depreciation -880,000 -540,000
Patent 450,000 500,000
6,760,000 4,950,000

Accrued expenses 120,000 110,000

Acounts payable 540,000 600,000
Note payable - 60 day bank loan 600,000 800,000
Note payable - 5 year loan 1,000,000 0
Share capital 3,000,000 2,500,000
Share premium 700,000 200,000
Retained earnings 1,040,000 740,000
Treasury shares -240,000 0
6,760,000 4,950,000

Additional information:
Net income is 1M
cash dividedn of P700,000 is declared and paid
Equipment purchased for cash of P2,000,000
All notes payable represent bank loans
Shares of 5,000 with par of P100 are issued at P200 per share
Treasury shares are purhcased for P240,000

3 hAPPY coMPANY used the direct method to prepare the statement of cash fdlows. The entity
had the following cash flows during 2022:

jan. 1, 2022 cash balance

Cash receipts from issuance of ordianry shares 1,208,000
cash receipts from customers 1,640,000
Proceeds from sale of treasury shares (cost P720,000) 800,000
Cash receipts from dividends on long-term investments 80,000
Cash receipts from repayment of loan made to another entity 640,000
Cash payments to supplies -1,080,000
Cash paid to redeem own shares -1,200,000
CAsh paid for interest on long-term notes -120,000
Cash payments for operating expenses -320,000
Cash paymnent for dividends -200,000
CAsh payment for income taxes -144,000
CAsh paid to purcahse land -1,040,000

Cash balance at year end?

 Susan Company
Statement of Cash Flows
For the month ended Dec. 31, 20x2

Operating Activities
Net Income for the month 1,000,000
Total

Changes in current asset & current liabilities

Current Assets

Decrease in Accounts Receivable 130,000

Increase in inventory -80,000
Decrease in Inventory 20,000
Increase in Accumulated Depreciation 340,000
Current Liabilities
Decrease in Accounts Payable -60,000
Increase in Accrued Expenses 10,000
Cash provided by operating activities
Investing Activities
Increase in property, plant & equipment -2,000,000
Purchase of equipment -2,000,000
Decrease in patent 50,000
Cash used by investing activities

Financing Activities
Decrease in Notes Payable(60 day) -200,000
Increase in Notes Payable (5-year loan) 1,000,000
Increase in share capital 500,000
Increase in Retained Earnings 300,000
Cash Divedend payment 700,000
Issued shares 1,000,000
Purchased Treasury shares -240,000
Shares Issued (at par value) 500,000
Cash provided by financing activities
Net Cash

1,000,000
264,000

736,000
1,000,000

410,000

-50,000
360,000

-3,950,000

3,560,000
970,000
Simple company reported the following comparative statement of financial position and income statement for 20

RE, Beg 2,555,000

RE, End 1,055,000
Net income 1,500,000
and income statement for 2021:

1,500,000.00
(590,000.00)
(75,000.00)
5,000.00

Purchases

20,000.00
15,000.00
(5,000.00)
100,000.00
(30,000.00)
50,000.00
10,000.00
1,000,000 tax
250,000
350,000
OPERATING ACTIVITIES (DIRECT/ INDIRECT)
DIVIDENDS
1,000,000
Beg AR, 350,000 5,910,000 Collections from customers INTEREST
Sales 6,500,000
TAXES
940,000

3,180,000 150,000 Cash purchases of inventoryDIRECT METHOD:

170,000 3,200,000 MAJOR CLASSES OF INFLOWS & O
INDIRECT METHOD:
Compute for the net income
Prepaid insurance 20,000 40,000 Determine change in the balnces
35,000
15,000

Accrued salaries 935,000 10,000

25,000 950,000 noncash items

Accrued interest 60,000 15,000 loss on ppe disposal

10,000 55,000 gain

250,000 Rent 80,000 40,000

350,000 10,000 50,000

Collections from customers 5,910,000

Cash purchases of inventory -3,180,000
Cash payment for insurance -35,000
Cash payment for salaries -935,000
Cash payment for interest -60,000
Cash from rent 50,000
Cash payment for tax -250,000
other expenses paid (500,000.00)
1,000,000
 DEFAULT ALTERNATIVELY
PAID FINANCING FINANCING
RECEIVED OPERATING INVESTING
PAID OPERATING FINANCING
RECEIVED OPERATING INVESTING
OPERATING

MAJOR CLASSES OF INFLOWS & OUTFLOW

Compute for the net income

Determine change in the balnces of th following:
Increase in current asset deduct
Decrease in current asset add
Increase in current liability add
Decrease in current liability dedcut
noncash items
depreciation & amoritzation add
loss on ppe disposal add
deduct
 SINGLE Mangga requested you to determine the causes of differences between its actual and budgeted
gross profit for product Durog based on the following data:

Per budget
Sales volume in units 10,000.00
Unit selling price 20.00 200,000.00
Unit Cost 12.00 120,000.00
GP per unit 8.00 80,000.00

Determine the gross profit variation using 6/4/3 way factor:

4-WAY FACTOR SALES Price factor 12,000 1.00 12,000.00

Volume factor 2,000 20.00 40,000.00

COST Price factor 12,000.00 3.00 36,000.00

Volume factor 2,000 12.00 24,000.00

6-WAY FACTOR SALES Price factor Budgted Qty x Change in price

10,000.00 1.00
Volume factor Change in Qty x Budgeted Price
2,000.00 20.00

Price-volume factor Change in Qty x Change in Price

2,000.00 1.00

COST Cost price factor 10,000.00 3.00

Volume factor 2,000 12.00

Cost-volume factor Change in Qty Change in Cost

2,000.00 3.00

3 WAY FACTOR Price Actual Qty x Change in Price

12,000.00 1.00

Cost Actual Qty x Change in Cost

12,000.00 3.00

Effect in GP Volume Change in Qty x Budgeted Gross profit per unit

2,000.00 8.00
% Change Assume that the following gross profit statements of Mangga, Inc are given for product Durog

Per budget
Sales 200,000.00
Cost of sales 120,000.00
Gross profit 80,000.00

Volume increased by 20%. Compute for the volume, price, cost and variation in gross profit

Volume: 20% 80,000.00 16,000.00

Price 200,000.00
252,000 240,000.00 12,000.00

Cost 120,000.00
144,000.00 180,000.00 (36,000.00)
(8,000.00)

MIX The following are data for TOTGA, Inc.

2022
Product Ghosting Product Ere
Sales volume 6,000 4,000 10,000
Unit selling price 10 6
Unit Cost 6 3

Compute for the gross profit variation

SALES
PG 6,000 10 60,000.00
PE 4,000 6 24,000.00
84,000.00
COS
PG 6,000 6 36,000.00
PE 4,000 3 12,000.00
48,000.00
GROSS PROFIT 3.60 36,000.00

Volume factor:
Change in qty 2,000 3.13
 Price Factor CY Sales CY qty x PY SP
54,000.00
20,000.00
84,000.00 74,000.00
Cost factor
CY qty x PY Unit Cost
24,000.00
12,000.00
48,000.00 36,000.00

Sales mix factor

Average GP/U based on CY qty x PY GP/U
PG 6,000 5 30,000.00
PE 4,000 2 8,000.00
10,000 38,000.00
Ave GP/U 3.80
Average GP/U PY 3.1250
Difference 0.68
Total CY Qty 10,000.00
Effect

EXERCISE
SINGLE Team Sawi had a product DNU (Di na umaasa) which had a cost, price and volume as follows:

2022
Sales volume in units 7,000.00
Selling price 12.00
Cost of sales 9.00

Compute the gross profit variation ( 6/ 4/ 3 way)

MIX WNP (WalaNgPagasa), Inc. provided the following:

2022
S A D
Unit Sales 400 350 1000
Price 4 5 3
Cost 1.6 2 1.2
2021
S A D
Unit Sales 500 200 1000
Price 4.2 4.5 2.8
Cost 1.68 1.8 1.12

Compute for the volume, price, cost and sales mix factor
al and budgeted

Actual Changes
12,000.00 2,000.00
21.00 252,000.00 52,000.00 f 1.00
15.00 180,000.00 60,000.00 u 3.00
6.00 72,000.00 (8,000.00) u (2.00)

f 52,000.00

u 60,000.00
(8,000.00)

10,000.00 Expected sales

40,000.00 Expected sales

Effect in GP
2,000.00 52,000.00

30,000.00

24,000.00

6,000.00 60,000.00
(8,000.00)

12,000.00 F

36,000.00 U 8,000.00

eted Gross profit per unit

16,000.00 F
product Durog

Actual
252,000.00
180,000.00
72,000.00

favorable

favorable

unfavorable

2021 change
Product Ghosting Product Ere
3,000 5,000 8,000 2,000
9 5
4 3
5 2

3,000 9 27,000.00
5,000 5 25,000.00
52,000.00 32,000.00

3,000 4 12,000.00
5,000 3 15,000.00
27,000.00 21,000.00
3.1250 25,000.00 11,000.00

6,250.00 Favorable
 10,000.00 favorable

12,000.00 unfavorable

11,000.00

6,750.00 favorable

me as follows:

2021
10,000.00
10.00
8.00