Transcribed Image Text: Malapit Company is a well-known laundry shop which was started and formed by the family with a starting capital of Php 1,000,000.00. It’s renting out 2 shops

Transcribed Image Text: Malapit Company is a well-known laundry shop which was started and formed by the family
with a starting capital of Php 1,000,000.00. It’s renting out 2 shops and has a total monthly
rental of Php 50,000.00. They are paying their employees’ wages a total of Php 20,000.00
monthly. The said laundry has a business vehicle worth Php 200,000.00 that is used as a delivery
service. Currently, the Gross revenue is @ Php 200,000.00 monthly. After two years of operation
they want to open a new branch so they are planning to borrow Php 500,000.00 as additional
funds from financial institution and use their business vehicles and laundry machines to serve as
guaranty of payments to the said financial institution.
1. Cite what are the cash inflow in the situation?
2. Cite the cash outflow in the situation?
3. are the assets of the business?
4. are the collaterals that the financial institution is going to take if the business
won’t be able to pay its due?

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