PROBLEM 3 You were engaged to audit the financial statements of Goblin Corporation as of and for the year ended December 31, 2018. Information directly obtained from your client's working trial balance are as follows: Accounts receivable 950,000 Inventory, January 1 Net purchases Accounts payable 544,500 2,450,000 430,000 3,940,000 Sales Goblin conducted an inventory count on its warehouse on December 31, 2018 and determined its inventory balance to be P365,000. Based from your audit procedures, you were able to ascertain the following: Inventory costing P55,000 (sold for P90,000) were shipped on December 27, 2018 with freight term FOB Destination. The sale was recorded upon shipment. Goods costing P12,000 were sold for P18,000 on December 30, 2018. The term is FOB Destination. The sale was recorded on January 3, 2019 when the goods were received by the customer. Goods costing P8,500 were purchased on December 28, 2018; term is FOB Shipping Point. The purchase was recorded upon receipt of the goods on January 4, 2019. Goods costing P9,000 were sold for P15,000 on December 30, 2018; term is FOB Shipping Point. The sale was recorded on January 2, 2019. Goods consigned by Grim Corporation to Goblin were initially recorded as purchases. The cost of the goods is P20,000. The goods were received on December 20, 2018; P2,000 still remains in the warehouse by the end of 2016. Goods consigned to Guardian Co. costing P15,000 were immediately recorded as sales (selling price is P25,000). Records from the consignee revealed that goods costing P3,000 still remains by the end of 2018. Goods costing P13,500 were purchased on December 29, 2018; term is FOB Shipping Point. The purchase was recorded on the same date. A purchase was recorded on December 27, 2018 for goods costing P6,000. The term is FOB Destination. The goods arrived on January 2, 2019. Requirements: 1. What is the adjusted balance of accounts receivable as of December 31, 2018? 2. What is the adjusted balance of inventory as of December 31, 2018? 3. What is the correct amount of net purchases for 2018? 4. What is the adjusted balance of accounts payable as of December 31, 2018? 5. What is the correct amount of sales for 2018? 6. What is the gross profit rate for 2018?