3. The net working capital of Philippines Company at December 31, 2020 was P 10,000,000. Selected information for the

year 2021 for Philippines Company is as follows:

Working capital provided from operations P 1,700,000

Capital expenditures 3,000,000

Proceeds from short-term borrowings 1,000,000

Proceeds from long-term borrowings 2,000,000

Payments on short-term borrowings 500,000

Payments on long-term borrowings 600,000

Proceeds from issuance of common stock 1,400,000

Dividends paid on common stock 800,000

What is the net working capital at December 31, 2021?

4. China Corporation had income before taxes of P 60,000 for the year. Included in this amount was depreciation of P

5,000, a charge of P 6,000 for the amortization of bond discounts, and P 4,000 for interest expense. What is the estimated

cash flow for the period?

6. It is the policy of a company that the current ratio cannot fall below 1.5 to 1.0. Its current liabilities are P 400,000 and

the present current ratio is 2 to 1. How much is the maximum level of new short-term loans it can secure without

violating the policy?

7. A firm's current ratio is currently 2.2 to 1. Management knows it cannot violate a working capital restriction contained in

its bond indenture. If the firm's current ratio falls below 2 to 1, technically it will have defaulted. If current liabilities are

P 200,000,000, what is the maximum new commercial paper that can be issued to finance inventory expansion?

10. Australia Corporation has 100,000 shares of stock outstanding. Below is part of Australia's Statement of Financial Position

for the last fiscal year.

Statement of Financial Position as of December 31 - Selected items

Cash P 455,000

Accounts receivable 900,000

Inventory 650,000

Prepaid assets 45,000

Accrued liabilities 285,000

Accounts payable 550,000

Current portion, long-term notes payable 65,000

What is the maximum amount Australia can pay in cash dividends per share and maintain current ratio of 2 to 1?

Assume that all accounts other than cash remain unchanged.