GROUP ACTIVITY Case 2: Moven Company reported that the financial records were destroyed by fire at the end of the current year. However, certain statistical data related to the income statements are available. P200,000 P 3,000,000 P 300,000 Interest Expenses Cost of Goods Sold Sales Discount The beginning inventory was P 500,000 and decreased 20% during the year. Administrative expenses are 25% of cost of goods sold but only 10% of gross sales. Distribution costs represent 70% of the operating expenses. 1. What amount should be reported as gross sales? 2. What total amount should be reported as operating expenses? 3. What amount should be reported as income before tax for the current year?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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GROUP ACTIVITY
Case 2:
Moven Company reported that the financial records were destroyed by fire at the end of
the current year.
However, certain statistical data related to the income statements are available.
Interest Expenses
P 200,000
Cost of Goods Sold
Sales Discount
P 3,000,000
P 300,000
The beginning inventory was P 500,000 and decreased 20% during the year.
Administrative expenses are 25% of cost of goods sold but only 10% of gross sales.
Distribution costs represent 70% of the operating expenses.
1. What amount should be reported as gross sales?
2. What total amount should be reported as operating expenses?
3. What amount should be reported as income before tax for the current year?
Transcribed Image Text:GROUP ACTIVITY Case 2: Moven Company reported that the financial records were destroyed by fire at the end of the current year. However, certain statistical data related to the income statements are available. Interest Expenses P 200,000 Cost of Goods Sold Sales Discount P 3,000,000 P 300,000 The beginning inventory was P 500,000 and decreased 20% during the year. Administrative expenses are 25% of cost of goods sold but only 10% of gross sales. Distribution costs represent 70% of the operating expenses. 1. What amount should be reported as gross sales? 2. What total amount should be reported as operating expenses? 3. What amount should be reported as income before tax for the current year?
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