1. Beb's Trinity Store's annual income statement for 2019 is shown in the table below. Beb worked full-time in the business and invested Php300,000 to acquire it and stock it with goods. Beb just tumed down a Php250,000-per-year compensated position as the manager of another store. During the year, he did not pay himself a wage. Revenues Costs Sales Inventory Adjustment Php550,000 Wholesale clothing 20,000 Equipment Labor Php300,000 20,000 150,000 10,000 ULilites and insurance Total Revenues Total Costs

1. Beb's Trinity Store's annual income statement for 2019 is shown in the table below. Beb worked full-time in the business and invested Php300,000 to acquire it and stock it with goods. Beb just tumed down a Php250,000-per-year compensated position as the manager of another store. During the year, he did not pay himself a wage. Revenues Costs Sales Inventory Adjustment Php550,000 Wholesale clothing 20,000 Equipment Labor Php300,000 20,000 150,000 10,000 ULilites and insurance Total Revenues Total Costs

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

1. Beb's Trinity Store's annual income statement for 2019 is shown in the table below. Beb
worked full-time in the business and invested Php300,000 to acquire it and stock it with
goods. Beb just tumed down a Php250,000-per-year compensated position as the
manager of another store. During the year, he did not pay himself a wage.
Revenues
Costs
Sales
Inventory Adjustment
Php550,000 Wholesale clothing
20,000 Equipment
Labor
Php300,000
20,000
150,000
10,000
Utlities and insurance
Total Revenues
Total Costs

C. Assume that the market interest rate is 8%, recalculate Trinity Store's total costs.
D. What is the economic profit (or loss) of Beb's Trinity Store in 2019?

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