1. Ramzes Inc. is a retailer of computer peripherals such as mouse, keyboard and speaker.

On 2013,
Typhoon Yolanda hit and all of Ramzes’ inventory was destroyed flood.

The last recorded data before the flood are as follows:

Inventory, 1/1/13 820,000
Purchases 1,150,000
Freight Out 35,000
Sales 1,890,000

Ramzes maintains a 35% profit on cost. What is the estimated cost of the destroyed inventory?
a. 380,000
b. 415,000
c. 450,000
d. 661,500

2. The following intangible assets should be amortized, except:

a. Copyright
b. Customer list
c. Perpetual franchise
d. All mentioned intangible assets should be amortized

3. Kuku Company purchased a boat for the use of its management personnel. The boat is expected to
be used over a period of 12 years. The engine has a useful life of 10 years while the sail has to be
replaced every 3 years. The boat shall be depreciated using the straight line method over
a. 12 years useful life
b. 10 years useful life
c. 6.5 years useful life based on the simple average of the useful life of all major components
of the boat
d. None of the above

Androm Company provided the following comparative statement of financial position at year-end:
2020 2019
Accounts receivable 1,175,000 920,000
Investments @ cost 315,000 450,000
Manufacturing plant 1,750,000 1,570,000
Accumulated depreciation (600,000) (495,000)
Accounts payable 800,000 650,000
Share capital 1,750,000 1,350,000
Retained earnings 900,000 770,00
An investment was sold for P300,000 during the year. There was no disposal of plant during the year.
The profit for the year was P775,000 before income tax of expense of P105,000. A dividend of P380,000
was paid on December 31, 2020.

4. What is the net cash provided by operating activities?

a. 485,000
b. 505,000
c. 610,000
d. 640,000

5. What is the net cash provided by investing activity?

a. 120,000
b. 350,000
c. 400,000
d. 480,000