FABM Cashflow Week 5
FABM Cashflow Week 5
FABM Cashflow Week 5
FUNDAMENTALS OF ACCOUNTANCY,
BUSINESS, AND MANAGEMENT 2
Week 5
FUNDAMENTALS OF ACCOUNTANCY,
BUSINESS, AND MANAGEMENT 2
Week 5
In a changing world like ours, we must adapt and find other ways of learning.
Modules are one way of delivering lessons that will help you understand specific topic
at your own pace and your own time.
There will be challenges and obstacles on the part of our learners, but as
facilitators, we are here to guide and supervise them. More importantly, we inculcate
the virtue of honesty while answering this module. Remember, you play a very big role
in your child’s learning!
What I Need to Know This will give you an idea of the skills or
competencies you are expected to learn in
the module.
1. Use the module with care. Do not put unnecessary mark/s on any part of the
module. Use a separate sheet of paper in answering the exercises.
2. Don’t forget to answer What I Know before moving on to the other activities
included in the module.
3. Read the instruction carefully before doing each task.
4. Observe honesty and integrity in doing the tasks and checking your answers.
5. Finish the task at hand before proceeding to the next.
6. Return this module to your teacher/facilitator once you are through with it.
If you encounter any difficulty in answering the tasks in this module, do not
hesitate to consult your teacher or facilitator. Always bear in mind that you are not
alone.
We hope that through this material, you will experience meaningful learning and gain
deep understanding of the relevant competencies. You can do it.
This module was designed and written to help the learners understand how to
prepare Cashflow Statement (CFS). It is the continuation of the lesson about
Statement of Changes in Equity. This module consists of examples and instructions
in addition to different activities to boost the interest of the learners to engage in a
self-learning process. It is important to have adequate knowledge on major
categories of cash flow including methods of reporting cash flow from
operating activities because it will make the preparation of Cashflow Statement
much easier and more precise.
1. discuss major categories of cash flow and the two methods of reporting cash
flow from operating activities; and
2. prepare a Cashflow Statement (CFS).
Problem # 1
1. Which of the following types of transformations is not found in financial
statements?
a. Profits
b. Revenue
c. Selling prices
d. Assets
2. Accounting data flow from the
a. Balance sheet to the income statement
b. Income statement to the statement of owner’s equity
c. Statement of owner’s equity to the balance sheet
d. Both b and c are correct
3. Consider the steps in the accounting cycle. Which part of the accounting cycle
provides information to help a business decide whether to expand its
operations?
a. Post-Closing Trial Balance
b. Adjusting Entries
c. Closing Entries
d. Financial Statements
4. Which columns of the accounting work sheet show unadjusted amounts?
a. Trial Balance
b. Adjustments
c. Income Statement
d. Balance Sheet
5. Which columns of the work sheet show profit?
a. Trial Balance
b. Adjustments
c. Income Statement
d. Both b and c
6. Which situation indicates a loss on the income statement?
a. Total debits equal total credits
b. Total credits exceed total debits
c. Total debits exceed total credits
d. None of the above
Problem # 2
Extension of Account Balances to Proper Worksheet Columns
Cash Accounts
Receivable
Buildings Interest Expense
Salaries expense Interest Revenue
Mortgage Payable Unearned
Revenue
Prepaid Office Supplies
Insurance
Equipment Withdrawals
Utilities Expense Interest Payable
Land Accum. Dep Bldg
Service Revenues Rent Expense
Salaries Payable Accounts Payable
Required:
On the space provided, indicate in which column of the worksheet the
amount in each account would be extended by entering the following
letters: A. Income Statement, debit; B. Income Statement, credit; C.
Balance Sheet, debit; D. Balance Sheet, credit.
The concept of cash includes not only cash. It also covers cash and cash
equivalents. Cash includes cash on hand and demand deposits which means
cash in bank. Cash equivalents include short-term highly cash investments
such as time deposits that can be converted into cash within three months
from date of investment.
There are two methods of reporting cash flow from operating activities
1. Direct method. Under the direct method, major classes of cash receipts
and cash payments are presented in the statement to arrive at the cash
flow from operating activities. The major activities may be classified into
Charyze Santos Co. provided the following information for the purpose of
presenting the statement of financial position on December 31, 2017:
Cash in Bank 70,000
Notes Payable 150,000
Notes Receivables 130,000
Accounts Receivables 170,000
Accounts Payable 45,000
Santos, Capital ???
Santos, Withdrawal 12,000
Land 200,000
Intangible Assets 45,000
Service Income 350,000
Office Supplies Expense 4,000
Office Supplies 8,000
Salaries Expense 58,000
Salaries Payable 20,000
Loans Payable, due on December 15 2019 200,000
Furniture and Fixtures 45,000
Building 840,000
Computer Equipment 32,000
Advertising Expense 12,500
Prepaid Insurance 15,000
Insurance Expense 15,500
Depreciation Expense 29,600
Accumulated Depreciation- Building 29,600
Accumulated Depreciation- Comp Eqpt. 5,200
Depreciation Expense 5,200
Unearned Service Revenue 58,500
Accumulate Depreciation- F & F 8,000
Miscellaneous Expense 5,500
Utilities Expense 6,500
Depreciation Expense 8,000
Required
1. Compute for the value of capital
2. Prepare the Cash flow Statement of Charyze Santos Co.
Following are the accounts of Julie Anne Ocampo Merchandising Co. for
the month ended September 30, 2017.
Cash 164,440
Computer Equipment 45,000
Furniture and Fixture 23,500
Service Vehicle 920,000
Accounts Payable 76,750
Loans Payable 736,000
Ocampo, Capital 500,000
Sales 112,650
Sales Return and Allowances 5,100
Sales Discount 1,460
Purchases 209,250
Purchase Return and
Allowances 18,500
Purchase Discount 2,050
Transportation-In 1,200
Transportation-out 500
Insurance Expense 18,000
Rent expense 21,000
Electricity expense 1,550
Water Expense 250
Telephone and Internet 1,750
Salaries Expense 15,450
Office Supplies Expense 15,000
Miscellaneous Expense 2,500
TOTAL
The following are the accounts of Vianca Lacson Review Center for the
year ended Dec. 31, 2015.
Cash 414,200
Accounts Receivable 44,000
Office Supplies 65,000
Review Materials 50,000
Prepaid Rent 51,000
Prepaid Insurance 17,000
Office Furniture 20,000
Computer Equipment 220,000
Land 477,000
Intangible Assets 100,000
Accounts Payable 70,000
Notes Payable, due on December 2020 440,200
Lacson, Capital 1,025,000
Lacson, Drawing 10,000
Fees Earned 129,500
Salaries Expense 100,000
Utilities Expense 25,000
Miscellaneous expense 20,000
Communication Expense 15,000
Business Permit 5,000
Transportation Expense 4,500
Expired portion of Insurance 17,000
Rent Expense 10,000
Depreciation Expense 17,000
Accumulated Depreciation- Computer
Equipment 10,000
Accumulated Depreciation- Office Furniture 2,000
Accumulated Depreciation- Repairs and
maintenance 5,000
???? ????
Required:
1. Compute for the total value of debits and credits
2. Prepare the Cash Flow Statement of Vianca Lacson Review Center
Following are the adjusted trial balance of JPP Merchandising Co. for
the years 2012-2016
References
Manuel, Zenaida V., 21st Century Accounting Process, 18th ed. Quezon City: Raintree
Trading & Publishing, Inc.
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