Determine the true net income of the branch.
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Beta Corp. has a branch in Davao City established on May 31, 2022. During 2022, the home office shipped merchandise costing P110,000 to the branch, billed at 110% of cost. At the end of the year, the branch reported sales of P200,000, operating expenses of P80,000, and a net income from its operation of P10,000.
Determine the true net income of the branch.
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- At the end of the year Stan Still Stationery Store had the following balances: Sales $485,000; Sales Discounts $2,540; Sales Returns and Allowances $14,280; Sales Salaries Expense $54,000. The Net Sales for the year are: Multiple ChoiceShipments received from home office are billed at 120% of cost. During the year, the branch received shipments billed at P360,000, and returned damaged goods with billed price of P24,000. The branch has an ending inventory of P72,000. The branch reported a loss of P10,000. How much is the true branch income? a. P56,000 b. P54,000 c. P44,000 d. P34,000During August, 2020, Sheffield’s Supply Store generated net sales of $60100. The company’s expenses were as follows: cost of goods sold of $35000 and operating expenses of $4500. The company also had rent revenue of $1000 and a loss on the sale of a delivery truck of $1700. Sheffield’s operating income for the month of August 2020 is $20600.$21600.$19900.$25100.
- A company reports the following amounts at the end of the year: Total sales revenue = $510,000; sales discounts = $18,000; sales returns = $35,000; sales allowances = $20,000. Compute net revenues. Net revenuesDexter, Incorporated, had a cost of goods sold of $67, 882. At the end of the year, the accounts payable balance was $11,989. How long, on average, did it take the company to pay off its suppliers during the year? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.For 2021, Walmart and Target had the following information (all values are in millions of dollars): Assume a 365-day year. a. What is each company's accounts receivable days? b. What is each company's inventory turnover? c. Which company is managing its accounts receivable and inventory more efficiently? Data table (Click on the following icon in order to copy its contents into a spreadsheet.) Walmart Target (Income Statement) Sales 572,762 106,007 Cost of Goods Sold (Income Statement) 428,997 74,962 Accounts Receivable (Balance Sheet) 8,279 830 Inventory (Balance She 56,519 13,902 = X
- Libscomb Technologies' annual sales are $5,851,355 and all sales are made on credit, it purchases $3,597,656 of materials each year (and this is its cost of goods sold). Libscomb also has $565,691 of inventory, $477,264 of accounts receivable, and beginning and ending of year $403,240 and $482,726 accounts payables (respectively). Assume a 365 day year. What is Libscomb’s Cash Cycle (in days)?Halifax Manufacturing allows its customers to return merchandise for any reason up to 90 days after delivery and receive a credit to their accounts. All of Halifax's sales are for credit (no cash is collected at the time of sale). The company began 2024 with a refund liability of $420,000. During 2024, Halifax sold merchandise on account for $12,700,000. Halifax's merchandise costs are 60% of merchandise selling price. Also during the year, customers returned $619,000 in sales for credit, with $342,000 of those being returns of merchandise sold prior to 2024, and the rest being merchandise sold during 2024. Sales returns, estimated to be 5% of sales, are recorded as an adjusting entry at the end of the yearPlanet Ltd produces fridges and freezers, which are sold to retailers. The financial statements for the last three years are as follows: Income statements for the year ending 31st December 2021 2022 £000 £000 Revenue 336,250 427,038 Cost of sales (126,675) (190,012) Gross profit 209,575 237,025 Administration expenses (73,290) (95,795) Distribution expenses (14,678) (8,720) Operating profit 121,407 121,931 Interest (8,750) (11,250) Profit before tax 118,142 166,326 Tax (22,531) (22,136) Profit for the year 90,126 88,545 Statements of financial position as at 31st December 2021 2022 £000 £000 Non-current assets Property, plant and equipment 286,250 327,650 Current assets Inventories 37,000 28,000 Trade receivables 42,000 43,500 Cash 19,632 24,570 98,632 96,070 Total assets 384,882…
- Cute Company operates a branch in Baguio City. Selected balances taken from the books of Home Office and Branch as of December 31, 2021 are as follows (see image below). The branch ending inventory included items costing P8,700 that were acquired from outside suppliers.1. How much is the Inventory on January 1 of the Branch that came from the Home Office? 2. How much is the Cost of Sales of the Branch at cost? 3. How much is the Consolidated Net Income? 4. How much is the Consolidated Inventory at December 31, 2021?Inverness Steel Corporation is a producer of flat-rolled carbon, stainless and electrical steels, and tubular products. The company's income statement for the 2021 fiscal year reported the following information ($ in millions): Sales $ 6,255 Cost of goods sold 5,190 The company's balance sheets for 2021 and 2020 included the following information ($ in millions): 2021 2020 Current assets: Accounts receivable, net $ 703 $ 583 Inventories 880 808 The statement of cash flows reported bad debt expense for 2021 of $8 million. The summary of significant accounting policies included the following notes ($ in millions): Accounts Receivable (in part)The allowance for uncollectible accounts was $10 and $7 at December 31, 2021 and 2020, respectively. All sales are on credit. InventoriesInventories are valued at the lower of cost or market. The cost of the majority of inventories is measured using the last-in, first-out (LIFO)…Halifax Manufacturing allows its customers to return merchandise for any reason up to 90 days after delivery and receive a credit to their accounts. All of Halifax’s sales are for credit (no cash is collected at the time of sale). The company began 2021 with a refund liability of $300,000. During 2021, Halifax sold merchandise on account for $11,500,000. Halifax's merchandise costs is 65% of merchandise selling price. Also during the year, customers returned $450,000 in sales for credit, with $250,000 of those being returns of merchandise sold prior to 2021, and the rest being merchandise sold during 2021. Sales returns, estimated to be 4% of sales, are recorded as an adjusting entry at the end of the year.Required:1. Prepare entries to (a) record actual returns in 2021 of merchandise that was sold prior to 2021; (b) record actual returns in 2021 of merchandise that was sold during 2021; and (c) adjust the refund liability to its appropriate balance at year end.2. What is the amount of…