I. Provide a statement of cash flows using the direct method.

Atty. Dee Maguiba established a consultancy firm.The following data are taken from the records of DM Consultancy Services for the year 2020.

Cash balance on January 1, 2020 308, 000

Additional investments of D. Maguiba 900, 000

Consultancy fees receivable from clients 500, 000

Proceeds from sale of land 950, 000

Dividends income received 23, 000

Cash receipts from clients 600, 000

Cash purchase of van 800, 000

Asset withdrawal of D. Maguiba 125, 000

Depreciation expense 40, 000

Rent income received 32, 000

Provision for bad debts 28, 000

Proceeds of BDO loan 350, 000

Principal long-term loan paid 600, 000

Payment of operating expenses 975, 000

II. The following data are taken from the records of Dr. Koby Deep for the year 2020

Proceeds from sale of furniture 60, 800

Interest on bank loan paid 24, 000

Principal of bank loan paid 600, 000

Operating expenses 180, 000

Rent income received 32, 000

Royalty income received 9, 000

Dividends of stock investment received 14, 000

Provision for bad debts 8, 400

Cash purchase of equipment 110, 000

Depreciation expense 30, 000

Cash collectible from patients 2, 600, 000

Collection of accounts 990, 000

Required:Compute the following:

a.Net cash flow from operating activities

b.Net cash flow from investing activities

c.Net cash flow from financing activities