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 operating expense in 2020? ₱525,000 ₱183,333 ₱126,923 ₱150,000
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 operating expense in 2020? ₱525,000 ₱183,333 ₱126,923 ₱150,000
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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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 operating expense in 2020?
₱525,000
₱183,333
₱126,923
₱150,000
Transcribed Image Text: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
DECEMBER 31
2020
2019
Net sales
???
???
Cost of goods sold
(2825,000)
???
Gross profit
???
B717,500
Operating expenses
???
(P574,000)
Operating Income
???
B143,500
Finance cost
(240,050)
(B38,310)
Earnings before taxes
???
B105,190
Income tax
(843,980)
(B42,076)
Net income
???
963,114
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