STAR Company's Statement of Comprehensive Income in 2023 revealed Sales amounting to P9,500,000. Sales Discounts and Sales Returns and Allowances are P300,000 and P200,000, respectively. Cost of Goods Sold amounted to P4,500,000. The operating expenses incurred by the company are P1,200,000 while the interest expense is P560,000. The tax rate is 30% The 2023 Statement of Financial Position of STAR Company shows Total Assets of P6, 500,000 and Total Shareholders' Equity of P4,000,000. Last year, the Total Liabilities and Total Shareholders' Equity were P3,000,000 and P5,000,000, respectively. Calculate the Return on Sales of STAR Company.
STAR Company's Statement of Comprehensive Income in 2023 revealed Sales amounting to P9,500,000. Sales Discounts and Sales Returns and Allowances are P300,000 and P200,000, respectively. Cost of Goods Sold amounted to P4,500,000. The operating expenses incurred by the company are P1,200,000 while the interest expense is P560,000. The tax rate is 30% The 2023 Statement of Financial Position of STAR Company shows Total Assets of P6, 500,000 and Total Shareholders' Equity of P4,000,000. Last year, the Total Liabilities and Total Shareholders' Equity were P3,000,000 and P5,000,000, respectively. Calculate the Return on Sales of STAR Company.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:STAR Company's Statement of Comprehensive Income in 2023 revealed Sales amounting to P9,500,000.
Sales Discounts and Sales Returns and Allowances are P300,000 and P200,000, respectively. Cost of
Goods Sold amounted to P4,500,000. The operating expenses incurred by the company are P1,200,000
while the interest expense is P560,000. The tax rate is 30% The 2023 Statement of Financial Position of
STAR Company shows Total Assets of P6, 500,000 and Total Shareholders' Equity of P4,000,000. Last year,
the Total Liabilities and Total Shareholders' Equity were P3,000,000 and P5,000,000, respectively.
Calculate the Return on Sales of STAR Company.
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