1) The movements in the cash account of NONCHALANT COOL Co. during 20x2 are shown below. Cash beg 200 Sales 6,000 3,800 Purchases Interest income 20 1,200 Operating expenses Rent incom 270 30 Interest expense Dividend income 40 70 Income taxes Held for trading securities 800 100 Investment in FVOCI Sale of old building 520 1, 100 Purchase of equipment Collection of non -trade note 60 130 Loan granted to employee Proceeds from loan with a bank 1,600 240 Payment of loan borrowed Issuance of shares 970 200 Reacquisition of shares 90 Dividends 3, 520 end Requirement : Prepare the statement of cash flows of NONCHALANT COOL Co . for the year ended December 31, 20x2. (Use Option 1 in classifying cash flows from operating activities 2. IMPECCABLE FLAWLESS Co. had the following information during 20x2: Accounts receivable January 1, 20x2 1,200 Accounts receivable December 31, 20x2 800 Sales on account and cash sales 16,000 Bad debts expense 400 Accounts payable January 1, 20x2 700 Accounts payable . December 31, 20x2 400 Cost of sales 8,000 Increase in inventory 1,800 Operating expenses on accrual basis 2,440 Increase in accrued payables for operating expenses 820 Decrease in prepaid operating expenses 780 Property, plant, and equipment, January 1, 20x2 3,600 Property, plant, and equipment, December 31, 20x2 5,400 Additional information a. There were no write-offs of accounts receivable during the year. b. Equipment with an accumulated depreciation of F 400 was sold during the year for F 240 resulting to a gain on sale of F 30 Requirements : Compute for the following (a) cash receipts from customers (b) cash payments to suppliers (c) cash payments for operating expenses , and (d) cash payments for acquisition of property, plant, and equipment. 3. DERISION OBJECT OF RIDICULE Co. has the following information as of December 31, 20x2 :

1.

Cash Flow Statement:

Cashflow from operating activity

Sales = 6000

Less: Purchase = 3800

Less: Operating Expense = 1200

Less: Interest Expense = 30

Less: Income Tax = 70

Cash flow from Operating activity(A) =900 

Cashflow from Investing Activity

Interest Income = 20

Add: Rent Income = 270

Add: Dividend income = 40

Add:Held for trading securities= 800

Add: Sale of old building = 520

Add: Collection of Non trade Note= 60

Less: Reaquisition of Shares = 200

Less: Purchase of equipment = 1100

Less: Investment in Fvoci = 100

Cash flow from Investing Activity (B)= 310

Cash Flow from Financing Activity

Proceeds from Loan = 1600

Add: issuance of Shares = 970

Less: Payment of loan borrowed =240

less: Loan granted to employee = 130

Less: DIvidend paid =90

Cash flow from financing activity (c) = 2110 

Opening Cash balance =200

Movement (A+B+C) = 3320

Closing Cash balance = 3520

Step-by-step explanation

2.

a)
Accounts Receivable Account 

Date Description Amount Date Description Amount Jan 1, 2012 Balance 1200 Sales 16000 Cash 15600 Dec 31, 201 Balance 800 16800 16800

The Cash Receipts from Customers is = 15600
Note
It is assumed that the company maintains bad debt under Allowence method. That is why Bad Debt Expense of 400 is not recorded in the Accounts Receivable account.

(b)
Accounts Payable Account.

Date Description Amount Date Description Amount Jan 1,2012 Balance 700 Cash 10100 Purchase 9800 Dec 31,2012 Balance 400 10500 10500

So, cash paid to Accounts Payable = 10100
Working Note
Purchase = Cost of Sales + Increase in Inventory = 8000 + 1800 = 9800

(c) 

Cash Paid for Operating Expense = Operating Expense on Accrual Basis - Increase in Accounts Payable for Operating Expense - Decrease in Prepaid Operating Expense = 2440 - 820 - 780 = 840
 

(d)
Equipment Account 

Date Description Amount Date Description Amount Jan 1, 2012 Balance 3600 Cash 240 Accumulated Cash 2410 Depriciation 400 Gain on Sale of Asset 30 Dec 31, 2012 Balance 5400 6040 6040

Purchase of Property, Plant and Equipment = 2410