Reference no: EM132788283
The following changes happened in some accounts of IZUKU MIDORIYA Company as follows:
Increase in Machinery P375,000
Increase in depreciation -machinery 600,000
Increase notes payable 450,000
Increase in investment in bonds 500,000
Increase in bonds payable 300,000
Additional information:
1. The net income for the period was P 4,000,000
2. In November of the current year, the company sold the machinery costing P375,000 with accumulated depreciation of P180,000 at a loss of P25,000.
3. In the month of December, the company purchased machinery costing P750,000 through the issuance of a 12% note payable of P450,000 and P300,000 cash.
Question 1: The net cash flows used by investing activities would be
a. 830,000
b. 800,000
c. 1,080,000
d. 605,000
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