1. You were able to obtain the following data from him: Cash sales for the past three months are as follows: P350 000, P385 000, and P450 000. 2. Based on his estimate, the cost of sales consisting of electricity and water is approximately P350 for every P1 000 of revenue. 3. All forms of equipment have an estimated life span of 10 years. 4. Utilities expense (other than what is consumed when customers do laundry) averages to P8 000 each month.
1. You were able to obtain the following data from him: Cash sales for the past three months are as follows: P350 000, P385 000, and P450 000. 2. Based on his estimate, the cost of sales consisting of electricity and water is approximately P350 for every P1 000 of revenue. 3. All forms of equipment have an estimated life span of 10 years. 4. Utilities expense (other than what is consumed when customers do laundry) averages to P8 000 each month.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Prepare an Income Statement. Typewritten.
Transcribed Image Text:1.
You were able to obtain the following data from him:
Cash sales for the past three months are as follows: P350 000, P385 000, and
P450 000.
2. Based on his estimate, the cost of sales consisting of electricity and water is
approximately P350 for every P1 000 of revenue.
3. All forms of equipment have an estimated life span of 10 years.
4.
Utilities expense (other than what is consumed when customers do laundry) averages
to P8 000 each month.
5. Other income from the sales of detergent, fabric softener, and other supplies needed
by customers for doing laundry averages to P4 500 per month.
6. His friend rents the place for P11 000 each month.
7.
The amount that is owed to the supplier of machines is to be paid within two years and
payments including interest are to be spread in a period of 24 months.
8. You and Fred have agreed that the portion of the loan payable within the year will be
considered as part of current liabilities, while the rest will be classified as long term.
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