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Combate Company provided the following relevant information involving its operating activities for the year ended December 31, 2020
12/31/2019 12/31/2020
Accrued interest payable recognized P40,000 P50,000
Depreciation expense recognized 72,800 75,600
Prepaid expenses recognized 3,100 4,940
For the year ended December 31, 2020, Combate Company reported a net income after tax of P648,000.
Problem 1: What is the net cash flow from operating activities that would be shown in its cash flow statement?
a. P731,760
b. P735,440
c. P637,080
d. P637,040
Financial Statement Analysis and Preparation
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