Question: How much is the income or loss after tax for 2021? Kindly prepare a good presentation of your computation.The store opened on January 01, 2021 and had total sales for the 1st month of Php 300,000.00.Corresponding increase in sales of 10% was realized for the remaining months of the 1st quarter.Second quarter sales were the same as the 1stquarter, corresponding 5% increase for the 3rd quarter, and 4thquarter sales is the same as the 1st quarter.The company had a miscellaneous income for the year of Php 50,000.00 but it seems that it has no effect on its financial since they also incurred the same amount for the spoilages, considered as other expense.Let us assume that the annual tax percentage will be 12%.Sales breakdown is: 70% from the beverages and the remaining percentage for the pastry line.Total investment of Ms. Cortesi amounted to Php1.5M and she is expecting the Payback Period on the 3rd year.Renovation cost of the rented space of the store amounted to Php 200,000.00 which is part of the total administrative and selling expenses. Instead of the total amount, the percentage taken for the administrative and selling expenses was 45% of the gross profit.

Answer:- Income after tax definition:- Income after tax or profit after tax, is that amount of…

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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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Question: How much is the income or loss after tax for 2021? Kindly prepare a good presentation of your computation.

The store opened on January 01, 2021 and had total sales for the 1st month of Php 300,000.00.
Corresponding increase in sales of 10% was realized for the remaining months of the 1st quarter.
Second quarter sales were the same as the 1stquarter, corresponding 5% increase for the 3rd quarter, and 4thquarter sales is the same as the 1st quarter.
The company had a miscellaneous income for the year of Php 50,000.00 but it seems that it has no effect on its financial since they also incurred the same amount for the spoilages, considered as other expense.
Let us assume that the annual tax percentage will be 12%.
Sales breakdown is: 70% from the beverages and the remaining percentage for the pastry line.
Total investment of Ms. Cortesi amounted to Php1.5M and she is expecting the Payback Period on the 3rd year.
Renovation cost of the rented space of the store amounted to Php 200,000.00 which is part of the total administrative and selling expenses. Instead of the total amount, the percentage taken for the administrative and selling expenses was 45% of the gross profit.

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