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The income statement of Dhofar Pharmacy under the conventional method is as under for the year ending December 31, 2022: OMR Sales Less: Cost of Sales Opening Inventory Add: Purchases Less: Closing Inventory Cost of Sales Less: Expenses Salaries & Wages Other Administrative Expenses Depreciation on Building Depreciation on Equipment Interest 190,000 721,000 911,000 202,000 OMR 162,000 132,000 59,000 52,500 44,500 OMR 1,129,000 709,000 420,000 450,000 -30,000 Net Loss Additional Information:- (i) General price index numbers on January 1, 2022 on December 31, 2022 are = 126 = 132 (ii) The Company uses LIFO method (iii) Interests are paid on December 31, 2022 (iv) Building was purchased in 2010 when the general price index was 90 (v) Equipment was purchased in 2015 when the general price index was 100 Required: You are required to prepare an income statement for the year 2022 under Current Purchase Power (CPP) Method and determine the profit or loss under CPP method.

The income statement of Dhofar Pharmacy under the conventional method is as under for the year ending December 31, 2022: OMR Sales Less: Cost of Sales Opening Inventory Add: Purchases Less: Closing Inventory Cost of Sales Less: Expenses Salaries & Wages Other Administrative Expenses Depreciation on Building Depreciation on Equipment Interest 190,000 721,000 911,000 202,000 OMR 162,000 132,000 59,000 52,500 44,500 OMR 1,129,000 709,000 420,000 450,000 -30,000 Net Loss Additional Information:- (i) General price index numbers on January 1, 2022 on December 31, 2022 are = 126 = 132 (ii) The Company uses LIFO method (iii) Interests are paid on December 31, 2022 (iv) Building was purchased in 2010 when the general price index was 90 (v) Equipment was purchased in 2015 when the general price index was 100 Required: You are required to prepare an income statement for the year 2022 under Current Purchase Power (CPP) Method and determine the profit or loss under CPP method.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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The income statement of Dhofar Pharmacy under the conventional method is as under for the year ending December 31, 2022: OMR Sales Less: Cost of Sales Opening Inventory Add: Purchases Less: Closing Inventory Cost of Sales Less: Expenses Salaries & Wages Other Administrative Expenses Depreciation on Building Depreciation on Equipment Interest Net Loss Additional Information:- 190,000 721,000 911,000 202,000 OMR 162,000 132,000 59,000 52,500 44,500 OMR 1,129,000 709,000 420,000 450,000 -30,000 (i) General price index numbers on January 1, 2022 on December 31, 2022 are = 126 = 132 (ii) The Company uses LIFO method (iii) Interests are paid on December 31, 2022 (iv) Building was purchased in 2010 when the general price index was 90 (v) Equipment was purchased in 2015 when the general price index was 100 Required: You are required to prepare an income statement for the year 2022 under Current Purchase Power (CPP) Method and determine the profit or loss under CPP method.
Transcribed Image Text:The income statement of Dhofar Pharmacy under the conventional method is as under for the year ending December 31, 2022: OMR Sales Less: Cost of Sales Opening Inventory Add: Purchases Less: Closing Inventory Cost of Sales Less: Expenses Salaries & Wages Other Administrative Expenses Depreciation on Building Depreciation on Equipment Interest Net Loss Additional Information:- 190,000 721,000 911,000 202,000 OMR 162,000 132,000 59,000 52,500 44,500 OMR 1,129,000 709,000 420,000 450,000 -30,000 (i) General price index numbers on January 1, 2022 on December 31, 2022 are = 126 = 132 (ii) The Company uses LIFO method (iii) Interests are paid on December 31, 2022 (iv) Building was purchased in 2010 when the general price index was 90 (v) Equipment was purchased in 2015 when the general price index was 100 Required: You are required to prepare an income statement for the year 2022 under Current Purchase Power (CPP) Method and determine the profit or loss under CPP method.
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