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Profitability Ratio) What is the Return on Asset Ratio in 2020?

Profitability Ratio) What is the Return on Asset Ratio in 2020?

FINANCIAL ACCOUNTING
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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(Profitability Ratio)
What is the Return on Asset Ratio in 2020? 

Years Ended December 31 Note 2020 2019 2018 REVENUE 18 P891,847,222 P1,945,184,563 P1,579,205,736 DIRECT COSTS 19 (356,478,659) (814,396,877) (665,367,430) GROSS PROFIT 535,368,563 1,130,787,686 913,838,306 SELLING AND DISTRIBUTION EXPENSES 20 (493,018,940) (772,051,259) (635,395,313) GENERAL AND ADMINISTRATIVE EXPENSES 21 (121,155,301) (182,220,088) (131,451,739) INTEREST EXPENSE 13 (20,658,602) (38,664,963) (16,065,157) OTHER INCOME – Net 22 26,788,920 7,890,994 2,556,365 GAIN FROM BARGAIN PURCHASE 4 6,436,907 INCOME (LOSS) BEFORE INCOME TAX (72,675,360) 145,742,370 139,919,369 PROVISION FOR (BENEFIT FROM) INCOME TAX 24 Current 19,794,400 (44,401,706) 44,884,664 43,339,450 (20,669,486) 24,215,178 Deferred (3,723,588) (24,607,306) 39,615,862 NET INCOME (LOSS) (48,068,054) 121,527,192 100,303,507 OTHER COMPREHENSIVE LOSS Item not to be reclassified to profit or loss Remeasurement loss on retirement benefits liability (net of deferred income tax) 16 (868,167) TOTAL COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO THE PARENT COMPANY (248,068,054) P120,659,025 P100,303,507 Basic and Diluted Earnings (Loss) per Share 25 (P0.0225) PO.0739 PO.0627 See accompanying Notes to Consolidated Financial Statements. : Revenue This account consists of: Note 2020 2019 2018 Net sales P872,989,411 13,204,275 5,653,536 P1,904,664,106 P1,533,709,139 Franchise fees 23 32,956,171 36,055,210 Rental income 23 7,564,286 9,441,387 P891,847,222 P1,945,184,563 P1,579,205,736 The Group recognizes revenue from sales of goods and services upon delivery to customers or at a point in time when the Group has no more obligations that could affect the acceptance of goods by the customers. Details of the Group's revenue based on geographical markets are as follows: Note 2020 2019 2018 Sale of goods: Luzon P663,801,125 163,309,752 45,878,534 P1,534,613,722 P1,267,576,409 273,436,992 96,613,392 Visayas 189,588,562 Mindanao 76,544,168 872,989,411 1,904,664,106 1,533,709,139 Franchise fees 23 32,956,171 P1,937,620,277 P1,569,764,349 13,204,275 36,055,210 P886,193,686 . Direct Costs This account consists of: Note 2020 2019 2018 Direct materials used 7 2305,734,523 P726,901,305 P590,119,121 Salaries, wages and other employee benefits Depreciation and amortization 30,967,806 62,214,295 54,426,242 1,793,406 1,703,580 10 15,296,270 17,449,482 2,362,716 2,117,344 Taxes and licenses 1,834,302 Utilities 5,997,493 5,554,421 Rental 23 11,770,660 2356,478,659 P814,396,877 P665,367,430 Salaries, wages and other employee benefits pertain to outside services and salaries and wages of personnel performing tasks directly related to the production of merchandise inventories.
Transcribed Image Text:Years Ended December 31 Note 2020 2019 2018 REVENUE 18 P891,847,222 P1,945,184,563 P1,579,205,736 DIRECT COSTS 19 (356,478,659) (814,396,877) (665,367,430) GROSS PROFIT 535,368,563 1,130,787,686 913,838,306 SELLING AND DISTRIBUTION EXPENSES 20 (493,018,940) (772,051,259) (635,395,313) GENERAL AND ADMINISTRATIVE EXPENSES 21 (121,155,301) (182,220,088) (131,451,739) INTEREST EXPENSE 13 (20,658,602) (38,664,963) (16,065,157) OTHER INCOME – Net 22 26,788,920 7,890,994 2,556,365 GAIN FROM BARGAIN PURCHASE 4 6,436,907 INCOME (LOSS) BEFORE INCOME TAX (72,675,360) 145,742,370 139,919,369 PROVISION FOR (BENEFIT FROM) INCOME TAX 24 Current 19,794,400 (44,401,706) 44,884,664 43,339,450 (20,669,486) 24,215,178 Deferred (3,723,588) (24,607,306) 39,615,862 NET INCOME (LOSS) (48,068,054) 121,527,192 100,303,507 OTHER COMPREHENSIVE LOSS Item not to be reclassified to profit or loss Remeasurement loss on retirement benefits liability (net of deferred income tax) 16 (868,167) TOTAL COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO THE PARENT COMPANY (248,068,054) P120,659,025 P100,303,507 Basic and Diluted Earnings (Loss) per Share 25 (P0.0225) PO.0739 PO.0627 See accompanying Notes to Consolidated Financial Statements. : Revenue This account consists of: Note 2020 2019 2018 Net sales P872,989,411 13,204,275 5,653,536 P1,904,664,106 P1,533,709,139 Franchise fees 23 32,956,171 36,055,210 Rental income 23 7,564,286 9,441,387 P891,847,222 P1,945,184,563 P1,579,205,736 The Group recognizes revenue from sales of goods and services upon delivery to customers or at a point in time when the Group has no more obligations that could affect the acceptance of goods by the customers. Details of the Group's revenue based on geographical markets are as follows: Note 2020 2019 2018 Sale of goods: Luzon P663,801,125 163,309,752 45,878,534 P1,534,613,722 P1,267,576,409 273,436,992 96,613,392 Visayas 189,588,562 Mindanao 76,544,168 872,989,411 1,904,664,106 1,533,709,139 Franchise fees 23 32,956,171 P1,937,620,277 P1,569,764,349 13,204,275 36,055,210 P886,193,686 . Direct Costs This account consists of: Note 2020 2019 2018 Direct materials used 7 2305,734,523 P726,901,305 P590,119,121 Salaries, wages and other employee benefits Depreciation and amortization 30,967,806 62,214,295 54,426,242 1,793,406 1,703,580 10 15,296,270 17,449,482 2,362,716 2,117,344 Taxes and licenses 1,834,302 Utilities 5,997,493 5,554,421 Rental 23 11,770,660 2356,478,659 P814,396,877 P665,367,430 Salaries, wages and other employee benefits pertain to outside services and salaries and wages of personnel performing tasks directly related to the production of merchandise inventories.
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION December 31 Note 2020 2019 ASSETS Current Assets Cash and cash equivalents P350,824,146 P853,266,354 Trade and other receivables 104,404,733 83,566,374 Due from related parties 15 114,745,318 139,903,014 35,011,152 110,171,602 37,934,520 778,249,167 Merchandise inventories 49,907,654 Deposits and advance rentals Other current assets 102,516,218 13,685,549 23 8 Total Current Assets 1,217,687,467 Noncurrent Assets Unamortized input value-added tax (VAT) Investment property Property and equipment Right-of-use (ROU) assets 1,791,459 126,875,050 237,782,743 982,788 222,786,889 115,194,610 10 23 80,874,880 35,086,878 213,603,422 69,777,537 Advances to contractors 10 Intangible assets 11 214,385,788 Net deferred tax assets 24 25,375,831 Total Noncurrent Assets 765,791,969 578,725,906 P1,544,041,136 P1,796,413,373 LIABILITIES AND EQUITY Current Liabilities Trade and other payables Current portion of: Notes payable Mortgage payable 12 P55,499,779 P136,017,618 138,922,678 2,695,005 21,101,793 13 115,834,240 14 2,321,815 Lease liabilities 23 27,980,841 Due to related parties Income tax payable 15 663,821 10,079,093 228,298,348 26,732,814 Total Current Liabilities 309,551,149 December 31 Note 2020 2019 Noncurrent Liabilities Noncurrent portion of: Notes payable Mortgage payable Lease liabilities 13 R- P75,269,897 14 1,204,446 68,119,511 8,168,926 77,492,883 305,791,231 2,348,845 23 92,241,490 Retirement benefits liability 16 5,407,430 Total Noncurrent Liabilities 175,267,662 Total Liabilities 484,818,811 Equity Capital stock Additional paid-in capital Retained earnings Other equity reserves Other comprehensive loss 17 213,368,000 777,837,044 213,368,000 17 777,837,044 196,706,537 266,111,391 4 51,252,779 55,192,582 (914,455) 1,238,249,905 16 (914,455) Total Equity 1,311,594,562 P1,544,041,136 P1,796,413,373
Transcribed Image Text:CONSOLIDATED STATEMENTS OF FINANCIAL POSITION December 31 Note 2020 2019 ASSETS Current Assets Cash and cash equivalents P350,824,146 P853,266,354 Trade and other receivables 104,404,733 83,566,374 Due from related parties 15 114,745,318 139,903,014 35,011,152 110,171,602 37,934,520 778,249,167 Merchandise inventories 49,907,654 Deposits and advance rentals Other current assets 102,516,218 13,685,549 23 8 Total Current Assets 1,217,687,467 Noncurrent Assets Unamortized input value-added tax (VAT) Investment property Property and equipment Right-of-use (ROU) assets 1,791,459 126,875,050 237,782,743 982,788 222,786,889 115,194,610 10 23 80,874,880 35,086,878 213,603,422 69,777,537 Advances to contractors 10 Intangible assets 11 214,385,788 Net deferred tax assets 24 25,375,831 Total Noncurrent Assets 765,791,969 578,725,906 P1,544,041,136 P1,796,413,373 LIABILITIES AND EQUITY Current Liabilities Trade and other payables Current portion of: Notes payable Mortgage payable 12 P55,499,779 P136,017,618 138,922,678 2,695,005 21,101,793 13 115,834,240 14 2,321,815 Lease liabilities 23 27,980,841 Due to related parties Income tax payable 15 663,821 10,079,093 228,298,348 26,732,814 Total Current Liabilities 309,551,149 December 31 Note 2020 2019 Noncurrent Liabilities Noncurrent portion of: Notes payable Mortgage payable Lease liabilities 13 R- P75,269,897 14 1,204,446 68,119,511 8,168,926 77,492,883 305,791,231 2,348,845 23 92,241,490 Retirement benefits liability 16 5,407,430 Total Noncurrent Liabilities 175,267,662 Total Liabilities 484,818,811 Equity Capital stock Additional paid-in capital Retained earnings Other equity reserves Other comprehensive loss 17 213,368,000 777,837,044 213,368,000 17 777,837,044 196,706,537 266,111,391 4 51,252,779 55,192,582 (914,455) 1,238,249,905 16 (914,455) Total Equity 1,311,594,562 P1,544,041,136 P1,796,413,373
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