Question: HELP ME SOLVE THIS USING THE DIRECT METHOD OF CASH FLOW STATEMENT Cash Flow Problem - DIRECT METHOD Happy Co. at the end of its
HELP ME SOLVE THIS USING THE DIRECT METHOD OF CASH FLOW STATEMENT

Cash Flow Problem - DIRECT METHOD Happy Co. at the end of its first year of operation revealed the following balances: Cash Due from Customers Furniture and Equipment Accounts Payable Notes Payable to BDO Service Income Rent Expense Advertising Expense Utilities Expense Salaries Expense 210,000 15,000 750,000 84,000 180,000 285,000 66,000 45,000 43,200 84,000 The bookkeeper prepared an income statement showing a net income of P46,800 and a balance sheet showing the owner's capital as 711,000. You received a note from the owner asking you to explain why the cash is only P210,000 when his cash investment at the start of the year was P664,200. Required: Without preparing a cash flow statement explain to the owner what happened to the cash by mentioning the following: a. cash received from customers b. cash paid for expenses C. cash paid for furniture and equipment d. cash received from the bank e. cash receive from the owner
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