MMK Merchandizing, the partnership of Mark, Mildred and Kurt, presented the following data related to 2019 operations: Sales P500,000 (300,000) P200,000 Cost of Goods Sold Gross Profit Operating Expenses Operating Income (80,000) P120,000 Finance Cost (12,000) Income before tax P108,000 Income tax (30%) (32,400) P75,600 Net Income Other data gathered are as follows: a. Operating expenses includes salary allocations to partners amounting to P30,000 and partners' drawing amounting to P10,000. b. Finance cost refers to interests paid to creditors amounting to P8,000 and interest paid to partners' average capital, P 4, 000.
MMK Merchandizing, the partnership of Mark, Mildred and Kurt, presented the following data related to 2019 operations: Sales P500,000 (300,000) P200,000 Cost of Goods Sold Gross Profit Operating Expenses Operating Income (80,000) P120,000 Finance Cost (12,000) Income before tax P108,000 Income tax (30%) (32,400) P75,600 Net Income Other data gathered are as follows: a. Operating expenses includes salary allocations to partners amounting to P30,000 and partners' drawing amounting to P10,000. b. Finance cost refers to interests paid to creditors amounting to P8,000 and interest paid to partners' average capital, P 4, 000.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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How much should be the
Transcribed Image Text:MMK Merchandizing, the partnership of Mark, Mildred and Kurt,
presented the following data related to 2019 operations:
Sales
P500,000
(300,000)
P200,000
Cost of Goods Sold
Gross Profit
Operating Expenses
Operating Income
(80,000)
P120,000
(12,000)
P108,000
Finance Cost
Income before tax
Income tax (30%)
(32,400)
P75,600
Net Income
Other data gathered are as follows:
Operating expenses includes salary allocations to partners
amounting to P30,000 and partners' drawing amounting to P10,000.
b. Finance cost refers to interests paid to creditors amounting to P8,000
and interest paid to partners' average capital, P 4, 000.
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