Provide the solution and answer PROBLEM NO. 6.Shaker Corporation experienced a fire on December 31, 2023, in which its financial records were partially destroyed.It has been able to salvage some of the records and has ascertained the following balances:December 31, 2023 December 31, 2022CashReceivables (net)InventoryAccounts payableNotes payableCommon stock, P100 parRetained earningsP 300,000720,5002,000,000500,000300,000Requirements: Compute the following:1. Cost of goods sold for 20232. Net income for 20233. Total assets as at December 31, 20234,000,0001,135,000P100,0001,260,0001,800,000900,000600,0004,000,0001,010,000Additional information:1. The inventory turnover is 3.6 times2. The return on common stockholders' equity is 22%. The company had no additional paid in capital.3. The receivables turnover is 9.4 times4. The return on assets is 20%5. Total assets as at December 31, 2022, were P6,050,000.

1. Inventory turnover = COGS/Average inventory 2.Return on common shareholder’s equity = Net…

Answered: Requirements: Compute the following: 1.…

Requirements: Compute the following: 1. Cost of goods sold for 2023 2. Net income for 2023 3. Total assets as at December 31, 2023

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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Concept explainers

Capital Gain

Any capital asset when sold can give the seller a higher or lower price from its purchase price leading to a capital gain or capital loss. The time period of holding an asset is decided based on if it is a long term or short-term capital gain. On that basis, the rate of taxation is decided if it is 20%, 15% or according to the tax brackets. The rate of taxation differs in the case of equity or debt, whether long or short term. The capital gain can be adjusted from capital loss to arrive at a net capital gain. The amount of gains and the exemption has to be reported in the tax return filed in the financial year in which the asset was transferred. The tax return can be filed quarterly, monthly, semi-annually or annually.

Question

Provide the solution and answer

PROBLEM NO. 6.
Shaker Corporation experienced a fire on December 31, 2023, in which its financial records were partially destroyed.
It has been able to salvage some of the records and has ascertained the following balances:
December 31, 2023 December 31, 2022
Cash
Receivables (net)
Inventory
Accounts payable
Notes payable
Common stock, P100 par
Retained earnings
P 300,000
720,500
2,000,000
500,000
300,000
Requirements: Compute the following:
1. Cost of goods sold for 2023
2. Net income for 2023
3. Total assets as at December 31, 2023
4,000,000
1,135,000
P100,000
1,260,000
1,800,000
900,000
600,000
4,000,000
1,010,000
Additional information:
1. The inventory turnover is 3.6 times
2. The return on common stockholders' equity is 22%. The company had no additional paid in capital.
3. The receivables turnover is 9.4 times
4. The return on assets is 20%
5. Total assets as at December 31, 2022, were P6,050,000.

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