Transcribed Image Text: Problem 1 A comparative balance sheet and income statement for Rhyezel Company follow: Rhyezel Company Comparative Balance Sheet As of the Years Ended December 31, 2018 and

Transcribed Image Text: Problem 1
A comparative balance sheet and income statement for Rhyezel Company
follow:
Rhyezel Company
Comparative Balance Sheet
As of the Years Ended December 31, 2018 and 2019
(in thousands)
2019
2018
Assets
P11
P4
Cash
230
310
Accounts receivable
195
160
Inventory
Prepaid expenses
Plant and equipment
Accumulated depreciation
8.
500
420
(85)
31
(70)
38
Long-term investments
P298
P830
Total assets
Liabilities and Shareholders’ Equity
Р300
P225
Accounts payable
70
80
Accrued liabilities
Bonds payable
195
170
71
63
Deferred income taxes
160
200
Ordinary shares
Retained earnings
Total liabilities and shareholders’ equity
132
92
P298
P830
Rhyezel Company
Income Statement
For the Year Ended December 31, 2019
(in thousands)
P750
Sales
450
Cost of goods sold
Gross margin
Selling and administrative expenses
Net operating income
Gain on sale of investments
300
223
77
P5
Loss on sale of equipment
2
3
Income before taxes
80
Income taxes
24
Net income
P56
During 2019, the company sold some equipment for P18,000 that had cost
P30,000 and on which there was accumulated depreciation of P10,000. In
addition, the company sold long-term investments for P12,000 that had cost Transcribed Image Text: P7,000 when purchased several years ago. Cash dividends totaling P16,000 were
paid during 2019.
Required:
1. Using the indirect method, determine the net cash provided by operating
activities for 2019.
2. Using the information in (1) above, along with an analysis of the remaining
balance sheet accounts, prepare a statement of cash flows for 2019.
present your answer here:

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