Max Coco's December 31, 2020 financial information is presented below: ASSETS PHP LIABILITIES PHP Cash and cash equivalent Accounts Payable P 4,600,000 Accounts Receivable Loans Payable - due in 3 P4,000,000 2,000,000 Inventory Property Plant and months 300,000 700,000 Loans Payable - due in 13 1,000,000 8,000,000 Equipment months Max Coco sells its product at a 30% markup. In 2021, total sales amounted to P1,300,000. At the end of 2021, half of the beginning inventory and ¾ of the inventory sold during the year remain unsold. What is the gross profit margin in 2021 if Max Coco's profit is P200,000? A) 15% 30% 16% 31%

Max Coco's December 31, 2020 financial information is presented below: ASSETS PHP LIABILITIES PHP Cash and cash equivalent Accounts Payable P 4,600,000 Accounts Receivable Loans Payable - due in 3 P4,000,000 2,000,000 Inventory Property Plant and months 300,000 700,000 Loans Payable - due in 13 1,000,000 8,000,000 Equipment months Max Coco sells its product at a 30% markup. In 2021, total sales amounted to P1,300,000. At the end of 2021, half of the beginning inventory and ¾ of the inventory sold during the year remain unsold. What is the gross profit margin in 2021 if Max Coco's profit is P200,000? A) 15% 30% 16% 31%

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Question

Max Coco's December 31, 2020 financial information is presented below:
ASSETS
PHP
LIABILITIES
PHP
Cash and cash equivalent
Accounts Payable
P 4,600,000
Accounts Receivable
Loans Payable - due in 3
P4,000,000
2,000,000
Inventory
months
300,000
700,000
Property Plant and
Loans Payable - due in 13
1,000,000
8,000,000
Equipment
months
Max Coco sells its product at a 30% markup. In 2021, total sales amounted to P1,300,000. At the end of 2021, half of the beginning
inventory and 4 of the inventory sold during the year remain unsold.
What is the gross profit margin in 2021 if Max Coco's profit is P200,000?
15%
30%
16%
31%

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