Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

RGM Science and Math Tutoring Center , owned and managed by Argem Galang was established in 2019 to cater for the needs of grade school

RGM Science and Math Tutoring Center, owned and managed by Argem Galang was established in 2019 to cater for the needs of grade school and high school students for online tutoring in Science and Mathematics subjects during the time of COVID19 pandemic. During 2020, Argem wants to know whether the center has sufficient cash to continue operating the center. She was able to collect the following transactions. The centers cash account was affected by receipts collected from tutees, P370,000; proceeds from sale of old computer, P8,000; the loan granted by CITIBANK to the tutoring center, P150,000; and additional investment from Argem, P50,000. On the other hand, cash was used to buy writing tablets, P15,000; to pay the bank interest of P7,500 and principal of P30,000; and to pay operating expenses of P185,000. Argem also made cash withdrawal of P20,000 during the year. The balance of the account Cash as of January 1, 2020 amounted to P 195,000. Required: Prepare the Statement of Cash Flows and answer the following: 1. How much is the net cash provided by operating activities? 2. How much is the net cash used for investing activities? 3. How much is the net cash provided by financing activities? 4. How much is the net increase/(decrease) in cash? 5. What is the ending cash balance?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Accounting questions

Question

6. What data will she need?

Answered: 1 week ago

Question

Demonstrate three aspects of assessing group performance?

Answered: 1 week ago