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Dimagiba Company began operation at the beginning of 2021. During the year, it had cash sales of 6,875,000 and sales on installment basis of 16,500,000. Dimagiba adds a markup on cost of 25% on cash sales and 50% on installment sales. Installments

Dimagiba Company began operation at the beginning of 2021. During the year, it had cash sales of 6,875,000 and sales on installment basis of 16,500,000. Dimagiba adds a markup on cost of 25% on cash sales and 50% on installment sales. Installments

FINANCIAL ACCOUNTING
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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Dimagiba Company began operation at the beginning of 2021. During the year, it

had cash sales of 6,875,000 and sales on installment basis of 16,500,000. Dimagiba

adds a markup on cost of 25% on cash sales and 50% on installment sales.

Installments receivable at the end of 2021 is 6,600,000.

The resulting realized gross profit for 2021 is:

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