CASH FLOWS AND MANUFACTURING OPERATIONS STATEMENT OF CASH FLOWS PROBLEM A.

The following financial information for the year ended Dec 31, 2011 is given for Pablo Com any! "#et income for the year was P$%,000. &ncl'ded in the net income was a gain on sale of e('i ment amo'nting to P10,000.

"De reciation e) ense for the year amo'nted to P30,000. Total roceeds from the sale of the e('i ment was P20,000. Additional e('i ment 'rchased totalled to P*%,000.

"Pablo borrowed, P100,000 from a savings ban+ in A'g'st ayable in 3, months.

"-ithdrawals by Pablo d'ring the amo'nted to P,0,000.

Changes in c'rrent acco'nts were as follows! 2011 Cash #otes receivable Acco'nts receivable /erchandise inventory Acco'nts ayable Ta)es ayable %0,000 .%,000 220,000 1,0,000 *0,000 3%,000 2010 1%,000 100,000 200,000 1$%,000 %0,000 ,0,000

0e('ired! Pre are a 1tatement of Cash 2lows for the year ended Dec 31, 2011 'sing the indirect method. 3se 1tatement 2ormat A.

4. /an'fact'ring 5 erations 6 5 erating data and inventory acco'nt balances for year 2011 of 7eneva /an'fact'ring Com any were as follows! P'rchases 8 0aw materials 3,1,920 Direct labor 99,0*% 2$,910 &ndirect labor 12,,.%0 -or+6in6 rocess &nvty, 4eg. 101,,$0 2actory 'tilities 29,220 -or+6in6 rocess &nvty, :nd 100,$00 2actory ins'rance *,100 2inished goods &nvty, 4eg. 1$*,290 2actory s' lies e) ense 9,$,0 2inished goods &nvty, :nd 1$1,100 0e airs ; /aintenance 1$,9*0 De reciation62actory bldg. $,,200 De reciation62actory e('i . ,2,*00 0e('ired! 1tatement of Cost of 7oods /an'fact'red and 1old. 3se 1tatement 2ormat 4 0aw materials &nvty, 4eg. 2,,$90 0aw materials &nvty, :nd

Statement format for Problem A Pablo Com any 1tatement of Cash 2lows 2or the <ear :nded Dec 31, 2011 Cas flo!s from O"erat#n$ A%t#&#t#es #et income Ad>'stments! Add ?Ded'ct@ De reciation 7ain on sale of e('i ment &ncrease in acco'nts receivable Decrease in notes receivable &ncrease in merchandise inventory &ncrease in acco'nts ayable Decrease in ta)es ayable Cas flo!s from In&est#n$ A%t#&#t#es Cash received from sale of e('i ment Payments to 'rchase new e('i ment ============= Cas flo!s from F#nan%#n$ A%t#&#t#es Cash received from borrowings Payments for withdrawals by owners #et increase ?decrease@ in Cash ============= Add! Cash 4alance, Aan'ary 1, 2011 Statement format for Problem B 7eneva /an'fact'ring Com any 1tatement of Cost of 7oods /an'fact'red and 1old 2or the <ear :nded December 31, 2011 Ra! mater#als 'se( 0aw materials inventory 8 4egin. Add! P'rchases 8 0aw materials Total raw materials available for 'se Bess! 0aw materials inventory 8 :nd ============= D#re%t Labor Fa%tor) o&er ea( &ndirect labor 2actory 'tilities 2actory ins'rance 2actory s' lies e) ense 0e airs and maintenance De reciation 8 factory bldg. De reciation 8 factory e('i . ============== ============= ============= ============= ============= ============= ============= ============= ============= ============= ============= ============= ============= =========== =========== =========== =========== =========== =========== =========== =========== ============= =========== =========== =========== =========== ============= =============

Total man'fa%t'r#n$ %osts Add! -or+6in6 rocess, 4egin. Total wor+ laced in rocess Bess! -or+6in6 rocess, :nd Cost of Goo(s Man'fa%t're( ============== Add! 2inished goods inventory8 4egin. ============== Total goods available for sale Bess! 2inished goods inventory 8 :nd ============== Cost of Goo(s Sol(

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