Sparta Company set up a branch in a province. The entity and its branch provided the following data for the second year of branch operation: Home Office Branch Sales revenue to outside customers P2,000,000 100,000 800,000 400,000 P100,000 60,000 200,000 Beginning inventory Purchases from outside supplier Shipment to branch Shipment from home office Ending inventory Operating expenses • The home office to branch markup based on cost is 25% this year and last year. • Twenty percent (20%) of the beginning inventory came from an outside supplier. 160,000 300,000 500,000 100,000 80,000 Twenty-four percent (24%) of the ending inventory of the branch came from last year's shipment from the home office, while 50% came from the current year's shipment from the home office. REQUIRED: Determine the following: 4. Individual net income of the branch 5. Total ending inventory to be reported in the combined balance sheet 6. Combined net income

Sparta Company set up a branch in a province. The entity and its branch provided the following data for the second year of branch operation: Home Office Branch Sales revenue to outside customers P2,000,000 100,000 800,000 400,000 P100,000 60,000 200,000 Beginning inventory Purchases from outside supplier Shipment to branch Shipment from home office Ending inventory Operating expenses • The home office to branch markup based on cost is 25% this year and last year. • Twenty percent (20%) of the beginning inventory came from an outside supplier. 160,000 300,000 500,000 100,000 80,000 Twenty-four percent (24%) of the ending inventory of the branch came from last year's shipment from the home office, while 50% came from the current year's shipment from the home office. REQUIRED: Determine the following: 4. Individual net income of the branch 5. Total ending inventory to be reported in the combined balance sheet 6. Combined net income

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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PROBLEM The following data pertain to instalment sales of Mickey's store: • Down payment, 20%. • Instaiment sales: P545,000 in Year 1; P785,000 in Year 2; and P968,000 in Year 3. • Mark-up on cost, 35%. • Collections after down payment: 40% in the year of sale, 35% in the year after sale, and 25% in the third year. Note: Round off the decimal factors to the nearest whole number. Sample - 35.74% to 36% REQUIREMENTS: 1. The realized gross profit in year 1 2. The realized gross profit in year 3 3. The unrealized gross profit for instaiment sales made during Year 2, as of the end of Year 2 4. The instalment account receivables at the end of year 3 5. The unrealized gross profit at the end of year 3
33. Subject :- Accounting
An income statement for Sam's Bookstore for the first quarter of the year is presented below: Sam's Bookstore Income Statement For Quarter Ended March 31 Sales $ 840,000 Cost of goods sold 545,000 Gross margin 295,000 Selling and administrative expenses Selling $ 116,000 Administration 136,000 252,000 Net operating income $ 43,000 On average, a book sells for $60. Variable selling expenses are $4 per book with the remaining selling expenses being fixed. The variable administrative expenses are 3% of sales with the remainder being fixed. The contribution margin for Sam's Bookstore for the first quarter is: Multiple Choice $239,000 $758,800 $213,800 $626,200
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Shipments received from home office are billed at 120% of cost. During the year, the branch received shipments billed at P360,000, and returned damaged goods with billed price of P24,000. The branch has an ending inventory of P72,000. The branch reported a loss of P10,000. How much is the true branch income? a. P56,000 b. P54,000 c. P44,000 d. P34,000
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Sweets Industries commenced operations during the year as large importer and exporter of sweet products. The imports were all from one country overseas. The company reported the following data: Purchases during the year P 12,000,000 Shipping costs from overseas 1,500,000 Shipping costs to export customers 1,000,000 Inventory at year-end (excluding applicable shipping costs, if any) 3,000,000 What amount of shipping costs should be included in the year-end inventory valuation?
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The data shown were obtained from the financial records of Italian Exports, Inc., for March: Estimated Sales $550,000 Sales 567,933 Purchases 294,814 Ending Inventory* 10% Administrative Salaries 50,340 Marketing Expense** 5% Sales Commissions 2% Rent Expense 7,400 Depreciation Expense 1,100 Utilities 2,600 Taxes*** 15% *of next month's sales **of estimated sales ***of income before taxes Sales are expected to increase each month by 10%. Prepare a budgeted income statement. Round your answers to the nearest dollar. Italian Exports, Inc. Budgeted Income Statement For the Month Ending Mar. 31, 2020 $fill in the blank 2 Cost of Goods Sold $fill in the blank 4 fill in the blank 6 $fill in the blank 8 fill in the blank 10 $fill in the blank 12 fill in the blank 14 Operating Expenses $fill in the blank 16 fill in the blank 18 fill in the blank 20 fill in the blank 22 fill in the blank 24 fill in…