The cooperative is engaged in producing and selling animal feeds. For the year 2022, the Cooperative has P8,700,000 gross income from sales of animal feeds, this amount came from 6,960 sacks sold at P1,250 per sack. Net surplus of the cooperative amounts to P2,350,000. The cooperative allocates 10% of net surplus to general reserve fund, 10% to education and training fund, 3% to community development fund and 7% to optional fund. How much is the minimum amount that can be allocated to patronage refund?
The cooperative is engaged in producing and selling animal feeds. For the year 2022, the Cooperative has P8,700,000 gross income from sales of animal feeds, this amount came from 6,960 sacks sold at P1,250 per sack. Net surplus of the cooperative amounts to P2,350,000. The cooperative allocates 10% of net surplus to general reserve fund, 10% to education and training fund, 3% to community development fund and 7% to optional fund. How much is the minimum amount that can be allocated to patronage refund?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The cooperative is engaged in producing and selling animal feeds. For the year 2022, the Cooperative has P8,700,000 gross income from sales of animal feeds, this amount came from 6,960 sacks sold at P1,250 per sack. Net surplus of the cooperative amounts to P2,350,000.
The cooperative allocates 10% of net surplus to general reserve fund, 10% to education and training fund, 3% to community development fund and 7% to optional fund.
How much is the minimum amount that can be allocated to patronage refund?
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