Additional Information: (a) Gross profit rate for 2019 is 50%, which decreased by 5% in 2020 due to increase in cost to produce their products. (b) Income tax rate is 40%. What is the gross profit in 2020? Options: ₱1,008,333 ₱825,000 ₱675,000 ₱444,231
Additional Information: (a) Gross profit rate for 2019 is 50%, which decreased by 5% in 2020 due to increase in cost to produce their products. (b) Income tax rate is 40%. What is the gross profit in 2020? Options: ₱1,008,333 ₱825,000 ₱675,000 ₱444,231
Fundamentals of Financial Management (MindTap Course List)
15th Edition
ISBN:9781337395250
Author:Eugene F. Brigham, Joel F. Houston
Publisher:Eugene F. Brigham, Joel F. Houston
Chapter4: Analysis Of Financial Statements
Section: Chapter Questions
Problem 24P: Income Statement for Year Ended December 31, 2018 (Millions of Dollars) Net sales 795.0 Cost of...
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Question
VAN DER LINDE CORPORATION have been operating since 2011 and have not issued any new shares since its initial public offering last 2016. Shown below is the incomplete Statements of Comprehensive Income of the Corporation for the years 2019 and 2020.
VAN DER LINDE CORPORATION
STATEMENTS OF COMPREHENSIVE INCOME
Additional Information:
(a) Gross profit rate for 2019 is 50%, which decreased by 5% in 2020 due to increase in cost to produce their products.
(b) Income tax rate is 40%.
What is the gross profit in 2020?
Options:
₱1,008,333
₱825,000
₱675,000
₱444,231
![DECEMBER 31
2020
2019
Net sales
???
???
Cost of goods sold
(8825,000)
???
Gross profit
???
9717,500
Operating expenses
???
(P574,000)
Operating Income
???
B143,500
Finance cost
(840,050)
(B38,310)
Earnings before taxes
???
105,190
Income tax
(843,980)
(842,076)
Net income
???
B63,114](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F89ca401c-52f7-4f6c-b9fb-86f0357092fb%2Fa68e124e-7dad-45ce-8251-f7def036bd97%2Fgcxoe3b_processed.png&w=3840&q=75)
Transcribed Image Text:DECEMBER 31
2020
2019
Net sales
???
???
Cost of goods sold
(8825,000)
???
Gross profit
???
9717,500
Operating expenses
???
(P574,000)
Operating Income
???
B143,500
Finance cost
(840,050)
(B38,310)
Earnings before taxes
???
105,190
Income tax
(843,980)
(842,076)
Net income
???
B63,114
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