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…

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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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What was the economic profit or loss of Julian’s online clothing store in 2019? E. Evaluate the business performance based on economic profit.