Chapter 17

S Company provided the following comparative statement of financial

position:
2020 2019
Cash and Cash Equivalents 640,000 300,000
Accounts Receivable, net 550,000 515,000
Inventory 810,000 890,000
Investments in W Company, at equity 400,00 390,000
Property, Plant and Equpiment 1,145,000 1,070,000
Accumulated Depreciation (345,000) (280,000)
Patent, net 100,000 350,000
Accounts Payable and
Accrued liabilities 815,000 950,000
Notes payable, long-term debt 600,000 900,000
Deferred tax liability 220,000 200,000
Share capital, 100 par value 850,000 650,000
Share Premium 230,00 170,000
Retained Earnings 585,000 365,000

1. The net income for the current year is P305,000

2. The entity paid a cash dividend of P85,000 on October 26
3. On January 2, the entity sold equipment costing P145,000, with
carrying amount of P28,000 for P18,000
4. On April 15, the entity issued 2,000 shares of capital for cash at P130
per share
5. On July 1, the entity purchased equipment for P120,000 cash
6. The entity acquired a 20% interest in W Company at the end of
2019. There was no goodwill attributable to the investment.
The investee reported net income of P150,000 for 2020 and paid cash
dividend of P100,000 on December 31, 2020.

Required:

Prepare a statement of cash flows for the current year.