To illustrate:a) Ms. Doria has a total savings of P250,000 which she invested in a busıness ventureb) Knowing that this will not be cnough, she borrowed PI00,000 from BDOc) She looked for a site, one near a school or hospital, to start a copying business Shepurchased a copying machine for P300,000 and paper supplies and ink for P40,000d) The remaining P10,000 she put aside as cash reserve for future needs of the copy centerC. Statement of Cash Flows for July:Cash receipts from customersCash paid for suppliesDuring the month of June, the following activities took place:• Reproduction of documents which brought in sales revenues of P50,000 in cash• Operating expenses paid: P12,000 for rent of the stall, P3,000 for power and water.She used up 25% of the paper supplies and ink that she bought.Cash withdrawn by DoriaCash paid for rentCash paid for water and powerIncrease in Cashe inCash at the beginning of July45,000Continue with the Doria illustration in the month of June. The following transactions for July:Cash at the end of July1. Cash Sales amounted to P60,0002. Additional supplies worth P2,000 were purchased again.3. From the total amount of supplies (on hand last June and the purchase made this July),50% were used up.4. Rent, water and electricity were also the same as in June.D. Statement of Financial Position (wealth accumulated) as at July 31:5. Doria withdrew cash of P10,000 for personal use.CashSuppliesA. Statement of Income (wealth produced for July):Copying MachineTotal AssetsPSalesRentWater and PowerSupplies usedProfit for JulyLoan Payable to BankDoria, CapitalTotal Liabilities and Owner's EquityB. Statement of Changes in Equity for July:Doria, Capital June 30275,000Add ProfitLess DrawingsDoria, Capital July 31P

A) Sales 60,000 Rent - 12,000 Water and Power - 3,000…

Answered: Supplies A. Statement of Income (wealth…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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To illustrate: a) Mr. San Juan has a total savings of P 300,000 which he invested in a business venture b) Knowing that this will not be enough, he borrowed P 150,000 from BDO c) He searched for a site, near a school to start a computer business. He purchased a desktop computers for P 350,000 and some paper supplies for 50,000. d) The remaining P 50,000 he put aside as cash reserve for his future needs During the month of October, the following transactions took place: He has a sales revenue of P 80,000 in cash Utility expenses of P 15,000 for the rent, P 5,000 for the water and electricity, and P 4,000 for the internet. For the paper supplies, he already used up 50% that he bought. Prepare the reports. 1/2 A. Statement of Income (wealth produced for October): Sales Rent Water and Power Supplies used Internet Profit for October B. Statement of Changes in Equity for October: San Juan, Capital October 1 Add Profit San Juan, Capital October 31 C. Statement of Cash Flows for October: Cash…
SITUATION 3: Alice wants to be a 'wise' money saver. She has P100,000 and is willing to put it in the bank. She found two banks that accept saving based on a simple interest. One bank offers 15% simple interest and another offers 10% simple interest, and she invested in both banks. After a year, she withdraws all interest and capital and finds out she has P112 000. of at 24. How much money did she put on the bank that has the 10% interest? b. P30,000 d. P70,000 a. P60,000 c. P80,000 41 25. How much money did she put on the other bank? ne b. P20,000 d. B40,000 a. P4,000 en c. $7,000 26.1f she got a total of P113 000 after a year with her original money, how much money was she able to put up on the bank that rewards 15% simple interest? 0o 00 c. P80,000 d. P70,000 a ttle
Mr. Ahmet, who won a prize of 1 million USD by participating in a quiz show, will provide a significant return if he uses it in repo, time deposit and bonds. However, careful decisions need to be made as to which area to invest. If the money is deposited in the bank, the bank pays interest once a month and pays 16% interest. Mr. Ahmet wants to buy 2 houses, one worth 900000 USD and the other 500000 USD, in the future, by investing this money in the bank. Accordingly, after how long is it possible for Ahmet Bey to buy these two houses with the money and income he earned? If you were Mr. Ahmet, how would you advise him to use this money?
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Blossom Googal owns a garage and is contemplating purchasing a tire retreading machine for $32.820. After estimating costs and revenues, Blossom projects a net cash inflow from the retreading machine of $4,700 annually for 11 years. Blossom hopes to earn a return of 8% on such investments. Click here to view the factor table. (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) What is the present value of the retreading operation? (Round answer to 2 decimal places, eg. 25.25) Present value 2$ Should Blossom Googal purchase the retreading machine?
Mary is considering opening a hobby and craft store. Mary plans to operate the business for six years. Mary requires a minimum 6% return on this investment. (Ignore income taxes in this problem). The data pertaining to her investment opportunity are: (see attached image). Mary plans to operate the business for six years. Mary requires a minimum 6% return on this investment. What is the total cash outflow needed at the beginning of the project.
Subject: accounting
Robert Jones and his wife Suzie recently opened an investment account with the intention of saving enough to purchase the house of their dreams, a beautiful, little white house on the corner of Michigan Avenue and Maple Street. Their goal is to have $45,000 down in five years. Their account will guarantee them a return of 8% compounded annually. How much do they need to put into the account right now to reach their objective? $46,778.96 $39,546.09 $51,214.75 $30,626.24
Soo Ling wants to start a business that she believes can produce cash flows of RM5,600, RM48,200, and RM125,000 at the end of each of the next three years, respectively. At the end of three years, she thinks she can sell the business for RM250,000. At a discount rate of 16 percent, what is her business worth today? Select one: A. RM314,011.33 B. RM297,077.17 C. RM325,837.81 D. RM280,894.67
Your neighborhood laundromat is for sale and a friend is considering investing in this business. Your friend has asked for your financial advice regarding this endeavor. For the business alone and no other assets (such as the building and land), the purchase price is $250,000. The net cash flows for the project are $30,000 per year for the next 5 years. The plan is to borrow the money for this investment at 6%. You will need to submit a presentation sharing your recommendation and you must address the following questions:Part A: Calculate the Net Present Value and Payback Period: What is the net present value of this project? Calculate the simple payback period for this project. Your desired payback period is 5 years. How long is the payback period for this project? Use the following template to complete the Unit 4 Excel spreadsheet (IP): Unit 4 IP Assignment Template Part B: Evaluate the investment and provide calculations for an alternative deal: How would you evaluate this…
Loni buys a machine for her business. The machine costs $280,000. Loni estimates that the machine can produce a $64,000 cash inflow per year for the next 9 years. Loni's cost of capital is 7 percent. What is the approximate present value of the cash flow benefits for Loni?
Donna has Php35,000. She decided to buy a new gadget at Php30,000 and invested her remaining Php 5,000 in an instrument that offers a 4.5 % rate per annum. After five years, the gadget was not anymore use and how much is the world of the investment? If she invested the other way around, how much money will it make?

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