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Question - Tee-Vee Company is a manufacturer of television. The domestic market for electronic goods is currently not doing well, and therefore many entities in this business are switching to export. As per the audited financial statements for the year ended December 31, 2020, the entity had net losses of P2 million. At December 31, 2020, its current assets aggregate to P20 million and the current liabilities aggregate to P25 million. Due to expected favorable changes in the government policies for electronics industry, the entity is projecting profits to coming year. Furthermore, the shareholders of the entity have arranged additional sources of finance for its expansion plants and to support its working needs in the next 12 months. Should Tee-Vee Company prepare its financial statements under the going concern assumption?
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