ABC Corporation has already prepared its 2021 sales, receivables, inventories and payables budget. Collections from customers...

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ABC Corporation has already prepared its 2021 sales, receivables, inventories and payables budget. Collections from customers an payments to suppliers are forecasted to be P6,000,000 and P3,600,000 respectively. Other cashflows are as follows: Administrative Expenses P 500,000 P 500,000 800,000 Interest to be received from Investment in Bonds Interest Payment Selling Expenses 100,000 Other Operating Expenses 40,000 Loan Payment 1,000,000 Proceeds from disposal of machinery 300,000 Collections of Loans to Officers 500,000 Payment to acquire new machinery 900,000 Dividends to Shareholders 200,000 Required: If the beginning cash balance of the entity is P500,000 and the target ending cash balance is P700,000, compute for the following: 1. Net cashflow from operating activities 2. Net cashflow from investing activities before adjusting cash balance 3. Net cashflow from financing before adjusting cash balance *Note for 1 to 3: Cashflow amount entered in the google form must be negative if it is a net cash outflow. 4. Cash Balance before borrowing or investing 5. Amount required to be borrowed or (invested) ABC Corporation has already prepared its 2021 sales, receivables, inventories and payables budget. Collections from customers an payments to suppliers are forecasted to be P6,000,000 and P3,600,000 respectively. Other cashflows are as follows: Administrative Expenses P 500,000 P 500,000 800,000 Interest to be received from Investment in Bonds Interest Payment Selling Expenses 100,000 Other Operating Expenses 40,000 Loan Payment 1,000,000 Proceeds from disposal of machinery 300,000 Collections of Loans to Officers 500,000 Payment to acquire new machinery 900,000 Dividends to Shareholders 200,000 Required: If the beginning cash balance of the entity is P500,000 and the target ending cash balance is P700,000, compute for the following: 1. Net cashflow from operating activities 2. Net cashflow from investing activities before adjusting cash balance 3. Net cashflow from financing before adjusting cash balance *Note for 1 to 3: Cashflow amount entered in the google form must be negative if it is a net cash outflow. 4. Cash Balance before borrowing or investing 5. Amount required to be borrowed or (invested)

Answer rating: 100% (QA)

1 NET CASH FLOW FROM OPERATING ACTIVITIES COLLECTIONS FROM CUSTOMERS 6000000 LESS ADMINSTRATIVE EXPE... View the full answer