Lyn merchandising has 1,000,000 common shares with each share priced at P8. In 2017, the company declared dividends of PO.10 per share. The balance sheet at the end of 2017 showed approximately the same amounts as that at the end of 2016. The financial statements of Lyn Merchandising are as follows: Lyn Merchandising, Income Statement for 2017 (In thousands) Sales P4,700 Cost of Goods Sold (2,300) Gross Profit P2,400 Operating Expenses: Depreciation P320 Others 1.230 (1,550) EBIT P850 Interest Expense (150) Earnings before tax P700 Income Tax (280) NET INCOME P420 Lyn Merchandising, Balance Sheet at December 31, 2017 (In Thousands) ASSETS LIABILITIES and SHE Cash P220 P190 Accounts Payable Accrued expenses Total Current Liab. Long-term debt Common stocks Accounts Rec. 180 440 Inventory 410 Р370 Total Current Ass. P1,070 1,960 PPE 5,600 1,810 Accum Dep. (2.100) P4.570 Retained earnings 430 Total Assets Total Liab and SHE P4.570 REQUIRED: (Round answers to two decimal places)

Lyn merchandising has 1,000,000 common shares with each share priced at P8. In 2017, the company declared dividends of PO.10 per share. The balance sheet at the end of 2017 showed approximately the same amounts as that at the end of 2016. The financial statements of Lyn Merchandising are as follows: Lyn Merchandising, Income Statement for 2017 (In thousands) Sales P4,700 Cost of Goods Sold (2,300) Gross Profit P2,400 Operating Expenses: Depreciation P320 Others 1.230 (1,550) EBIT P850 Interest Expense (150) Earnings before tax P700 Income Tax (280) NET INCOME P420 Lyn Merchandising, Balance Sheet at December 31, 2017 (In Thousands) ASSETS LIABILITIES and SHE Cash P220 P190 Accounts Payable Accrued expenses Total Current Liab. Long-term debt Common stocks Accounts Rec. 180 440 Inventory 410 Р370 Total Current Ass. P1,070 1,960 PPE 5,600 1,810 Accum Dep. (2.100) P4.570 Retained earnings 430 Total Assets Total Liab and SHE P4.570 REQUIRED: (Round answers to two decimal places)

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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