D. What was the economic profit or loss of Julian’s online clothing store in 2019?E. Evaluate the business performance based on economic profit. 2. Below is an annual income statement of Julian's Online Clothing Store. Julian isalready working full time in the store and P300,000 of his money has been used(invested) to buy the store and stock it with merchandise. Julian just turned downa job offer to manage a store that will pay him P250,000 per year. He did not payhimself a salary in 2019. According to the data:RevenuesSalesInventory AdjustmentTotal RevenuesCostsP550,000 Wholesale clothing20,000EquipmentLaborUtilities and insuranceP570,000 Total CostsP300,00020,000150,00010,000$480,000

Economic Profit is the Profit earned by any Person after subtracting the actual costs incurred to…

Answered: What was the economic profit or loss of…

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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Match the appropriate terms with the definitions. Definition 1. The economic benefit (increase in assets) gained by providing goods or services to customers. 2. Investors who purchase common stock. 3. The economic sacrifice (decrease in assets) incurred in the process of providing goods or services to customers. 4. Created when a company borrows money from a bank. 5. Assets minus liabilities and retained earnings. 6. Occurs when expenses exceed revenues during the year. 7. Individuals or institutions that have loaned goods or services to a business. 8. Complete set of accounts used in accounting systems. 9. Occurs when revenue exceeds expenses during the year. 10 Assets minus liabilities. 11. The section of the statement of cash flows that reflects cash paid for expenses. 12 The section of the statement of cash flows that reflects cash collected from the issue of stock. 13 The section of the statement of cash flows that reflects cash paid to purchase land. 14 The item shown on the…
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What was the economic profit or loss of Julian’s online clothing store in 2019? E. Evaluate the business performance based on economic profit.