CHAPTER 10 ANSWERS AND COMPUTATIONS

ANSWERS
PROBLEM 10-1
1. A
2. B
3. C
4. D

PROBLEM 10-2
1. A
2. C
3. B

PROBLEM 10-3
1. A
2. B
3. C
4. B

PROBLEM 10-4
1. A

PROBLEM 10-5
1. A

COMPUTATIONS
Problem 10-1
1.)
Dividend received P 500,000.00
Cash received from customers P 9,000,000.00
Interest received P 200,000.00
Cash paid to suppliers and employees (P 6,000,000.00)
Interest paid on long term debt (P 400,000.00)
Income taxes paid (P 300,000.00)
Net cash provided by Operating Activities P 3,000,000.00

2.)
Proceeds from sale of long term investments P 2,000,000.00
Net cash provided by Investing Activities P 2,000,000.00

3.)
Dividend paid (P 1,000,000.00)
Proceeds from issuing share capital P 1,500,000.00
Net cash provided by Financing Activities P 500,000.00

4.)
Cash balance, January 1 P 1,800,000.00
Operating Activities P 3,000,000.00
Investing Activities P 2,000,000.00
Financing Activities P 500,000.00
Cash balance, December 31 P 7,300,000.00

Problem 10-2
1.)
Cash paid to purchase inventory (P 7,800,000.00)
Cash received from sale of trading securities P 2,500,000.00
Cash paid for interest in bank loan (P 450,000.00)
Cash collected from customers P 10,000,000.00
Cash paid for income taxes (P 1,350,000.00)
Cash paid to purchase trading securities (P 1,000,000.00)
Net cash provided by Operating Activities P 1,900,000.00

2.)
Cash paid to repay principal amount of bank loan (P 1,000,000.00)
Cash received from issuance of ordinary shares P 1,200,000.00
Cash paid for dividends (P 2,000,000.00)
Net cash provided by Financing Activities P 1,800,000.00

3.)
Cash balance, beginning P 1,500,000.00
Operating Activities P 1,900,000.00
Financing Activities (P 1,800,000.00
Cash balance, end P 1,600,000.00

Problem 10-3
1.)
Cash receipts from customers P 2,000,000.00
Cash receipts from dividends on long-term investments P 300,000.00
Cash payments for wages and other operating expenses (P 1,200,000.00)
Cash payments for insurance (P 100,000.00)
Cash payments for taxes (P 400,000.00)
Net cash provided by Operating Activities P 600,000.00

2.)
Cash receipts from repayment of loan made to another entity P 2,200,000.00
Cash payment to purchase land (P 800,000.00)
Net cash provided by Investing Activities P 1,400,000.00
3.)
Cash receipts from issuance of ordinary shares P 4,000,000.00
Cash payments for dividends (P 200,000.00)
Net cash provided by Financing Activities P 3,800,000.00

4.)
Cash balance - Beginning P 3,500,000.00
Operating Activities P 600,000.00
Investing Activities P 1,400,000.00
Financing Activities P 3,800,000.00
P 9,300,000.00

Problem 10-4
1.)
Checking account #101 P 1,750,000.00
Checking account #201 (P 100,000.00)
Time deposit P 250,000.00
Money market placement P 1,000,000.00
90-day treasury bill, due February 28, 2021 P 500,000.00
Cash and cash equivalents P 3,400,000.00

Problem 10-5
5.)
Cash balance, beginning year P 1,300,000.00
Cash flow from Financing Activities P 1,000,000.00
Cash flow from Operating Activities P 400,000.00
Cash flow from Investing Activities (P 1,500,000.00)
Cash balance, end P 1,200,000.00

CHAPTER 14 ANSWERS AND COMPUTATIONS

ANSWERS
PROBLEM 14-1
1. B

PROBLEM 14-2
1. C

PROBLEM 14-3
1. C

PROBLEM 14-4
1. D
PROBLEM 14-5
1. D

COMPUTATIONS
Problem 14-1
Materials P 700,000.00
Irrecoverable purchase taxes P 60,000.00
Total cost of inventory P 760,000.00

Problem 14-2
Materials P 300,000.00
Production labor cost P 330,000.00
Production overhead cost P 120,000.00
Cost of completed inventory P 750,000.00

Problem 14-3
Merchandise purchased P 4,000,000.00
Freight In P 100,000.00
Total P 4,100,000.00
Purchase returns (P 20,000.00)
Inventoriable cost P 4,080,000.00

Problem 14-4
Cost of purchases based on vendors' invertories P 5,000,000.00
Import duties P 400,000.00
Freight and insurance on purchases P 1,000,000.00
Other handling cost relating to imports P 100,000.00
Brokerage commission and paid to agents for arranging imports P 200,000.00
Total cost of purchases P 6,700,000.00

Proble 14-5
Direct materials and labor P 180,000.00
Variable production overhead P 25,000.00
Factory administrative costs P 15,000.00
Fixed production costs P20,000.00
Product cost P 240,000.00

CHAPTER 15 ANSWERS AND COMPUTATIONS

ANSWERS
PROBLEM 15-1
1
2
PROBLEM 15-2
1. B

PROBLEM 15-3
1. C

PROBLEM 15-4
1. A
2

PROBLEM 15-5
1. D

COMPUTATIONS
Problem 15-1
1.)

Problem 15-2
Cash Price P 950,000.00
Installation cost P 30,000.00
Total cost P 980,000.00

Problem 15-3
Cash price P 2,000,000.00
Installation cost P 50,000.00
Total cost P 2,050,000.00

Problem 15-4
1.)
Fair value of old machine P 700,000.00
Cash payment P 160,000.00
Cost of new machine P 860,000.00

2.)

Problem 15-5
Fair value of land given - Eagle P 2,800,000.00
Cash paid by Eagle P 1,000,000.00
Total Cost P 3,800,000.00

CHAPTER 18 ANSWERS AND COMPUTATIONS

ANSWERS
PROBLEM 18-1
a
b
c

PROBLEM 18-2
a
b
c

PROBLEM 18-3
1. C

PROBLEM 18-4
1
2

PROBLEM 18-5
1. C

COMPUTATIONS
Problem 18-3
Acquisition cost P 6,000,000.00
Add: Share in net income (20% x 7,000,000) P 1,400,000.00
Total P 7,400,000.00
Less: Share in cash dividend ( 20% x 4,000,000) P 800,000.00
Investment balance P 6,600,000.00

Problem 18-4

Problem 18-5
Share net income (20% x 4,000,000) P 800,000.00