Malapit Company is a well-known laundry shop which was started and formed by the family with a starting capital of Php 1,000,000.00. It's renting out 2 shops and has a total monthly rental of Php 50,000.00. They are paying their employees' wages a total of Php 20,000.00 monthly. The said laundry has a business vehicle worth Php 200,000.00 that is used as a delivery service. Currently, the Gross revenue is @ Php 200,000.00 monthly. After two years of operation they want to open a new branch so they are planning to borrow Php 500,000.00 as additional funds from financial institution and use their business vehicles and laundry machines to serve as guaranty of payments to the said financial institution.
Malapit Company is a well-known laundry shop which was started and formed by the family with a starting capital of Php 1,000,000.00. It's renting out 2 shops and has a total monthly rental of Php 50,000.00. They are paying their employees' wages a total of Php 20,000.00 monthly. The said laundry has a business vehicle worth Php 200,000.00 that is used as a delivery service. Currently, the Gross revenue is @ Php 200,000.00 monthly. After two years of operation they want to open a new branch so they are planning to borrow Php 500,000.00 as additional funds from financial institution and use their business vehicles and laundry machines to serve as guaranty of payments to the said financial institution.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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