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FM Prelim Quiz 2
FM Prelim Quiz 2
FM Prelim Quiz 2
Block/Course/Year:_________________ Date:___________________________
FINANCIAL MANAGEMENT 6
PRELIM – 2ND QUIZ
Solve each problem and encircle the letter of your final answer. If there is no answer or the answer
cannot be determined, simply write and encircle “answer cannot be computed”.
1. Lester Ramos Company has an operating income of P 195,632 for the year ended Dec. 31, 2017.
The following information are given:
Prepaid Income, January 1, 2017 25,698
Accrued Income, January 1, 2017 54,889
Prepaid Income, Dec. 31, 2017 74,555
Accrued Income, Dec. 31, 2017 34,983
How much is the operating cash flows provided by the company’s operating activities?
4. The company earned the ff. net income from 2012 to 2014:
2012 25,000
2013 32,000
2014 61,000
The company pays the bonus at the end of the year. Suppose that the company computes bonus
after taxes (30%) but before bonus, how much bonus is presented in the statement of financial
position in the year:
a. 2012
b. 2013
c. 2014
5. Segismundo Inc. has the following cash discharge that it reported in its statement of cash flows:
Operating activities 57,129
Investing activities 122,569
Financing activities 74,228
How much is the increase/(decrease) in the cash of the corporation?
If the company just opened at the beginning of the year, determine the
a) Inventory turnover if FIFO inventory method is being used
b) Inventory turnover if Weighted average inventory method is being used