Problem 4

Nile Company provided the following information at the end of each year:

2020 2019

Borrowings P2,500,000 P 800,000

Share capital 3,500,000 2,000,000

Retained earnings 950,000 750,000

Borrowings of P300,000 were paid during 2020 and a new borrowing include P200,000 vendor financing arising on the acquisition of property.

The movement in retained earnings comprised profit for 2020 of P900,000 and net of cash dividend paid to the shareholders.

The movement in share capital arose from issuance of share capital for cash during the year.

Required:

1. Compute for the cash acquired from new long-term borrowings
2. Compute for the cash dividend declared and paid during the current year
3. Compute the net cash provided or used by financing activities