handle her cash infiows and outflows for the month. Transactions made by Cora for the month are listed down below: 1. She purchased the merchandise for P 40,000 2. Sold merchandise for cash P 50,000 for the month 3. Payment to rent is P 2,500 4. Purchase of the 2nd hand laptop is P 20,000 5. Payment for utilities is P 10,000 Transactions Classification of Cash Infiows Cash Outflows Activities 1. What can you say about the Cash flow of Cora? 2. Do you think that there is really a need to borrow money from Candida amounting to P 50,000 with 5% interest per month?
handle her cash infiows and outflows for the month. Transactions made by Cora for the month are listed down below: 1. She purchased the merchandise for P 40,000 2. Sold merchandise for cash P 50,000 for the month 3. Payment to rent is P 2,500 4. Purchase of the 2nd hand laptop is P 20,000 5. Payment for utilities is P 10,000 Transactions Classification of Cash Infiows Cash Outflows Activities 1. What can you say about the Cash flow of Cora? 2. Do you think that there is really a need to borrow money from Candida amounting to P 50,000 with 5% interest per month?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Please see the attached photos and answer it completely.
Transcribed Image Text:Due to the pandemic caused by COVID 19, Cora, 45 years old, is having a hard time to
earn for a living and she wishes to put up a small sari-sari store but since she has only P
25,000 as for her starting capital, she ask help from her friend Candida. The latter lent her
P50,000 with an interest of 5 % per month. Since she is just starting the business and not
familiar with managing cash related activities, you are going to help Cora how she could
Transcribed Image Text:handle her cash infiows and outflows for the month. Transactions made by Cora for the month
are listed down below:
1. She purchased the merchandise for P 40,000
2. Sold merchandise for cash P 50,000 for the month
3. Payment to rent is P 2,500
4. Purchase of the 2nd hand laptop is P 20,000
5. Payment for utilities is P 10,000
Transactions
Classification of
Cash Inflows
Cash Outfiows
Activities
1. What can you say about the Cash flow of Cora?
2. Do you think that there is really a need to borrow money from Candida amounting to
P 50,000 with 5% interest per month?
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