Draw the cash flow diagram for the following project:Act.Direct Cost12Indirect Cost Duration1 month1 month34Php 10,800,000Php 1,200,000 1 monthPhp15,600,000Php 1,200,000 1 monthPhp2,400,000 Php600,000 1 month56 Php3,600,000 Php600,000 1 monthPhp3,000,000Php600,000Php1,200,000 Php600,000PaymentPhp3,900,000Php1,500,000Php 12,000,000Php 19,200,000Php3,000,000Php4,800,000Note: Payment is made 1 month after completion of the work in a lump sum.

Act123456Direct Cost 3,000,0001,200,00010,800,00015,600,0002,400,0003,600,000Indirect…

Answered: cash flow diagram

Business

Finance

cash flow diagram

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter12: Capital Investment Analysis

Section: Chapter Questions

Problem 2BE

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Concept explainers

Cash Flow Statement Analysis

A company's cash flow is the movement of its cash inflows and cash outflows. A cash flow statement is prepared to determine changes in an organization's cash position. A cash flow statement shows how much money was generated and spent on the business during the fiscal year. The cash flow analysis is a method of analyzing an organization's investing, financing, and operating activities. A cash flow statement reveals an organization's liquidity and solvency, as well as its ability to change cash flows in the future. It eliminates the other effects of accounting methods by improving the comparability of different organizations' operational performance.

Question

Draw the cash flow diagram for the following project:
Act.
Direct Cost
1
2
Indirect Cost Duration
1 month
1 month
3
4
Php 10,800,000Php 1,200,000 1 month
Php15,600,000Php 1,200,000 1 month
Php2,400,000 Php600,000 1 month
5
6 Php3,600,000 Php600,000 1 month
Php3,000,000
Php600,000
Php1,200,000 Php600,000
Payment
Php3,900,000
Php1,500,000
Php 12,000,000
Php 19,200,000
Php3,000,000
Php4,800,000
Note: Payment is made 1 month after completion of the work in a lump sum.

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