Create a statement of cash flows for the year ended december

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Question - The following are the comparative statements of financial position of H Company to aid in preparing the statement of cash flows:

H Company Comparative Statements of Financial Position December 31, 2021 and 2020


2021

2020

ASSETS



Cash and cash equivalents

P900,000

P620,000

Financial assets at fair value through profit or loss

400,000

300,000

Accounts receivable

1,956,500

1,445,000

Inventory

3,050,000

3,200,000

Long-term investments

1,000,000

1,250,000

Property, plant, and equipment

9,000,000

8,000,000

Less: accumulated depreciation

(2,200,000)

(2,000,000)

Patents

600,000

600,000

Less: accumulated amortization

(100,000)

-

TOTAL ASSETS

P14,606,500

P13,415,000




LIABILITIES AND EQUITY



Accounts payable

2,200,000

1,900,000

Income tax payable

34,500

45,000

12% Bonds payable

4,000,000

4,000,000

Less: Discount on bonds payable

(250,000)

(300,000)

Ordinary share capital

7,500,000

6,500,000

Retained earnings

1,122,000

1,270,000

TOTAL LIABILITIES AND EQUITY

P14,606,500

P13,415,000

The following took place in 2021:

-H Company declared and paid cash dividends of P750,000.

-A long-term investment was sold for P280,000.

-Equipment costing P900,000 with accumulated depreciation of P400,000 was sold for P420,000.

Other information:

-The 6% bonds payable were issued on December 31, 2020 and interest is payable every December 31.

-Income tax rate is 30%.

Required - Create a statement of cash flows for the year ended December 31, 2021 for H Company using the indirect method of presenting cash flows from operating activities.

Reference no: EM133178415

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