Question 1 This question has two parts, Part A and B. You are required to answer both parts. 1 Mar 1 Mar 2 Mar Part A On 1 March, David Tan established "David Interior Designs". During the first month of operations, his business experienced the following events: I Mar David Tan invested $50,000 in the business. Paid $18,000 for office rent for the next six months. Paid $5,000 to advertise the services of David Interior Designs. David Interior Designs officially opened for business. Received $10,000 cash from a client as advance payment for services to be performed next month. Received a bill of S200 from Singapore Powers for the month of March, The bill will be paid next month. 31 Mar Borrowed $20,000 by signing a note payable. Analyse the above and record the necessary entries (indicate if no entry is required for the event). Narrations are not required (13 marks) 10 Mar 28 Mar Part B Two companies (Company A and Company B) approached you for a loan. Both companies are similar in most aspects except for the composition of cash flows (see below). Company A Company B Net cash flows from: 2019 (S) 2018 (S) 2019 (8) 2018 (8) Operating activities 150,000 70,000 (50,000) 30,000 Investing activities (80,000) (40,000) 120,000 Financing activities 30,000 10,000 30,000 Net cash flows 100,000 40,000 100,000 40,000 Examine the above information to explain whether you should lend to Company A or Company B. (12 marks) 10,000