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With one of its assets being financed by liability, will the clinic sustain its operations in thelong run? Justify your answer.

With one of its assets being financed by liability, will the clinic sustain its operations in thelong run? Justify your answer.

FINANCIAL ACCOUNTING
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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Subject: Business Finance (Profitability & Liquidity) The following requires computation and justification of your answers. (Please refer to the given picture)
1. After finishing his medicine degree at the University of the Philippines Manila, Holden Dagooc turned his dream clinic into reality by investing P5,000,100 in the name of the business, Dagooc MD. He bought P500,000 worth of medical supplies such as syringes, stethoscopes, sphygmomanometer, and the like. He also purchased a P7,350,000magnetic resonance imaging on account the day after. With one of its assets being financed by liability, will the clinic sustain its operations in thelong run? Justify your answer.
Transcribed Image Text:1. After finishing his medicine degree at the University of the Philippines Manila, Holden Dagooc turned his dream clinic into reality by investing P5,000,100 in the name of the business, Dagooc MD. He bought P500,000 worth of medical supplies such as syringes, stethoscopes, sphygmomanometer, and the like. He also purchased a P7,350,000magnetic resonance imaging on account the day after. With one of its assets being financed by liability, will the clinic sustain its operations in thelong run? Justify your answer.
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