Smart Inc. provided the following data for the current year: Retained earnings, January 1 3,000,000 Dividends declared 1,000,000 Sales 8,350,000 Dividend income 100,000 Inventory, January 1 1,040,000 Purchases 3,720,000 Salaries 1,540,000 Contribution to employees' pension fund 280,000 Delivery 205,000 Miscellaneous expenses 125,000 Doubtful accounts expense 10,000 Depreciation expense 85,000 Loss on sale of securities 40,000 Loss on inventory writedown 150,000 Income from discontinued operation, net of tax 500,000 Income tax expense 105,000 Inventory on December 31 (P850,00 less P150,000 write-down of obsolete inventory) 700,000 4. What is the amount of cost of goods sold? 5. What is the total amount of expenses before income tax? 6. What is the net income for the current year? a. 2,000,000 b. 2,500,000 c. 1,500,000 d. 2,650,000 7. What is the balance of retained earnings on December 31, 2021?
Smart Inc. provided the following data for the current year:
Dividends declared 1,000,000
Sales 8,350,000
Dividend income 100,000
Inventory, January 1 1,040,000
Purchases 3,720,000
Salaries 1,540,000
Contribution to employees' pension fund 280,000
Delivery 205,000
Miscellaneous expenses 125,000
Doubtful accounts expense 10,000
Loss on sale of securities 40,000
Loss on inventory writedown 150,000
Income from discontinued operation, net of tax 500,000
Income tax expense 105,000
Inventory on December 31 (P850,00 less P150,000 write-down of obsolete inventory) 700,000
4. What is the amount of cost of goods sold?
5. What is the total amount of expenses before income tax?
6. What is the net income for the current year?
a. 2,000,000
b. 2,500,000
c. 1,500,000
d. 2,650,000
7. What is the balance of retained earnings on December 31, 2021?
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