Answer the following: a) Was the partnership business profitable in its first year of operation? Explain your answer.

b) How will you describe the capital investment of the two partners after operating their partnership business for one year?

c) Will you advise Romy and Pio to continue their business operation? Why?

d) How can the knowledge of accounting help Romy and Pio in making their landscaping business sustainable and in the process achieve the goal for the company in doing business for profit, people, and the planet (i.e., 3Ps or the triple bottom line)?

e) Using your answer in letter D, give 2 examples of how Romy and Pio can use the accounting information gathered in increasing profit while making more sustainable business decisions.

f) What suggestions can you give to partners Romy and Pio regarding the management of the business' "Cash" account. The given are: -10-column worksheet:

RP Landscaping and Plant Services
Adjusted Trial Balance
December 31, 2024
	Unadjusted				Adjusted		Income		Statement of
	Trial balance		Adjustments		Trial balance		Statement		Financial Position
Account Title	Debit	Credit	Debit	Credit	Debit	Credit	Debit	Credit	Debit	Credit
Cash	2,828,500				2,828,500				2,828,500
Accounts Receivable	145,000				145,000				145,000
Allowance for Bad Debts		7,500		7,000		14,500				14,500
Notes Receivable	80,000				80,000				80,000
Interest Receivable			9,600		9,600				9,600
Advances to Employees	12,000				12,000				12,000
Prepaid Rent	240,000			120,000	120,000				120,000
Landscaping Supplies on Hand	218,750			158,500	60,250				60,250
Office Equipment	97,000				97,000				97,000
Accumulated Depreciation - Office Equipment		18,000		9,000		27,000				27,000
Landscaping Equipment	320,000				320,000				320,000
Accumulated Depreciation - Landscaping Equipment		60,000		30,000		90,000				90,000
Landscaping Tools	120,000				120,000				120,000
Accumulated Depreciation - Landscaping Tools		22,000		11,000		33,000				33,000
Accounts Payable		35,500				35,500				35,500
Unearned Service Income		48,000	24,000			24,000				24,000
Income Tax Payable
Utilities Payable				14,500		14,500				14,500
Interest Payable				3,000		3,000				3,000
Notes Payable due in 3 years		75,000				75,000				75,000
Romy, Capital		1,000,000				1,000,000				1,000,000
Romy, Drawing	25,000				25,000				25,000
Pio, Capital		1,000,000				1,000,000				1,000,000
Pio, Drawing	10,000				10,000				10,000
Service Income		2,700,000		24,000		2,724,000		2,724,000
Interest Income				9,600		9,600		9,600
Salaries and Wages Expense	656,000				656,000		656,000
Income Tax Expense
Utilities Expense	90,750		14,500		105,250		105,250
Landscaping Supplies Expense			158,500		158,500		158,500
Transportation Expense	90,000				90,000		90,000
Rent Expense			120,000		120,000		120,000
Repairs and Maintenance Expense	14,400				14,400		14,400
Depreciation Expense			50,000		50,000		50,000
Bad Debts Expense			7,000		7,000		7,000
Advertising Expense	12,000				12,000		12,000
Miscellaneous Expense	6,600				6,600		6,600
Interest Expense			3,000		3,000		3,000
Total	4,966,000	4,966,000	386,600	386,600	5,050,100	5,050,100	1,222,750	2,733,600	3,827,350	2,316,500
Net Income							1,510,850			1,510,850
Total							2,733,600	2,733,600	3,827,350	3,827,350

- Cash Flows

	RP Landscaping and Plant Services
	Statement of Cash Flows (Direct Method)
	For the Month Ended December 31, 2024
	Cash Flows from Operating Activities:
	Cash service fee from landscaping customers				2,635,000
	Cash received representing unearned service income				48,000
	Payment of salaries to employees				(656,000)
	Payment of utilities expenses				(90,750)
	Payment of transportation expenses				(90,000)
	Payment of various repairs and maintenance expenses				(14,400)
	Payment of advertising expenses				(12,000)
	Payment of various miscellaneous expenses				(6,600)
	Cash advance given to employee				(12,000)
	Net cash provided by operating activities				1,801,250
	Cash Flows from Investing Activities:
	Purchase of landscaping supplies				(218,750)
	Net cash used in investing activities				(218,750)
	Cash Flows from Financing Activities:
	Payment of rent				(240,000)
	Proceeds of the 3 years promissory note				75,000
	Romys cash withdrawal				(25,000)
	Pio's cash withdrawal				(10,000)
	Net cash used in financing activities				40,000
	Net increase in cash for the year:
	Net cash inflows from operating activities				1,801,250
	Cash inflows from financing activities				40,000
	Cash outflows from investing activities				(218,750)
	Net increase in cash for the year				1,622,500
	Cash balance, January 1, 2024				1,446,000
	Net increase in cash for the year				1,622,500
	Cash balance, December 31, 2024				3,068,500

-Change in Partners' Equity

	RP Landscaping and Plant Services
	Statement of Changes in Partners' Equity
	For the Month Ended Decemeber 31, 2024
				Romy		Pio		Total
	Capital, December 1, 2024			1,000,000		1,000,000		2,000,000
	Net income			1,510,850		1,510,850		3,021,700
	Sub-total			2,510,850		2,510,850		5,021,700
	Drawing			(25,000)		(10,000)		(35,000)
	Capital, December 31, 2024			2,485,850		2,500,850		4,986,700