What is the Gross Profit Rate in 2020? Years Ended December 31Note202020192018REVENUE18P891,847,222 P1,945,184,563 P1,579,205,736DIRECT COSTS19(356,478,659) (814,396,877) (665,367,430)GROSS PROFIT535,368,563 1,130,787,686913,838,306SELLING AND DISTRIBUTION EXPENSES20(493,018,940)(772,051,259) (635,395,313)GENERAL AND ADMINISTRATIVE EXPENSES21(121,155,301)(182,220,088)(131,451,739)INTEREST EXPENSE13(20,658,602)(38,664,963)(16,065,157)OTHER INCOME – Net2226,788,9207,890,9942,556,365GAIN FROM BARGAIN PURCHASE46,436,907INCOME (LOSS) BEFORE INCOME TAX(72,675,360)145,742,370139,919,369PROVISION FOR (BENEFIT FROM) INCOME TAX24Current19,794,400(44,401,706)44,884,66443,339,450(20,669,486)24,215,178Deferred(3,723,588)(24,607,306)39,615,862NET INCOME (LOSS)(48,068,054)121,527,192100,303,507OTHER COMPREHENSIVE LOSSItem not to be reclassified to profit or lossRemeasurement loss on retirement benefitsliability (net of deferred income tax)16(868,167)TOTAL COMPREHENSIVE INCOME (LOSS)ATTRIBUTABLE TO THE PARENT COMPANY(248,068,054) P120,659,025P100,303,507Basic and Diluted Earnings (Loss) per Share25(P0.0225)PO.0739PO.0627See accompanying Notes to Consolidated Financial Statements.: RevenueThis account consists of:Note202020192018Net salesP872,989,41113,204,2755,653,536P1,904,664,106P1,533,709,139Franchise fees2332,956,17136,055,210Rental income237,564,2869,441,387P891,847,222 P1,945,184,563P1,579,205,736The Group recognizes revenue from sales of goods and services upon delivery to customers or at apoint in time when the Group has no more obligations that could affect the acceptance of goods bythe customers.Details of the Group's revenue based on geographical markets are as follows:Note202020192018Sale of goods:LuzonP663,801,125163,309,75245,878,534P1,534,613,722 P1,267,576,409273,436,99296,613,392Visayas189,588,562Mindanao76,544,168872,989,4111,904,664,1061,533,709,139Franchise fees2332,956,171P1,937,620,277 P1,569,764,34913,204,27536,055,210P886,193,686. Direct CostsThis account consists of:Note202020192018Direct materials used72305,734,523P726,901,305P590,119,121Salaries, wages and otheremployee benefitsDepreciation and amortization30,967,80662,214,29554,426,2421,793,4061,703,5801015,296,27017,449,4822,362,7162,117,344Taxes and licenses1,834,302Utilities5,997,4935,554,421Rental2311,770,6602356,478,659P814,396,877P665,367,430Salaries, wages and other employee benefits pertain to outside services and salaries and wages ofpersonnel performing tasks directly related to the production of merchandise inventories.

SOLUTION- GROSS PROFIT RATE = GROSS PROFIT / NET SALES *100 . GROSS PROFIT = NET SALES - COST .…

Years Ended December 31 Note 2020 2019 2018 REVENUE 18 P891,847,222 P1,945,184,563 P1,579,205,736 DIRECT COSTS (356,478,659) (814,396,877) (665,367,430) 19 GROSS PROFIT 535,368,563 1,130,787,686 913,838,306 SELLING AND DISTRIBUTION EXPENSES (493,018,940) (772,051,259) (635,395,313) 20 GENERAL AND ADMINISTRATIVE EXPENSES 21 (121,155,301) (182,220,088) (131,451,739) INTEREST EXPENSE 13 (20,658,602) (38,664,963) (16,065,157) OTHER INCOME – Net 22 26,788,920 7,890,994 2,556,365 GAIN FROM BARGAIN PURCHASE 4 6,436,907 INCOME (LOSS) BEFORE INCOME TAX (72,675,360) 145,742,370 139,919,369 PROVISION FOR (BENEFIT FROM) INCOME TAX Current Deferred 24 19,794,400 44,884,664 43,339,450 (44,401,706) (24,607,306) (20,669,486) 24,215,178 (3,723,588) 39,615,862 INET INCOME (LOSS) (48,068,054) 121,527,192 100,303,507 OTHER COMPREHENSIVE LOSS Item not to be reclassified to profit or loss Remeasurement loss on retirement benefits liability (net of deferred income tax) (868,167) 16 TOTAL COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO THE PARENT COMPANY (248,068,054) P120,659,025 P100,303,507

Years Ended December 31 Note 2020 2019 2018 REVENUE 18 P891,847,222 P1,945,184,563 P1,579,205,736 DIRECT COSTS (356,478,659) (814,396,877) (665,367,430) 19 GROSS PROFIT 535,368,563 1,130,787,686 913,838,306 SELLING AND DISTRIBUTION EXPENSES (493,018,940) (772,051,259) (635,395,313) 20 GENERAL AND ADMINISTRATIVE EXPENSES 21 (121,155,301) (182,220,088) (131,451,739) INTEREST EXPENSE 13 (20,658,602) (38,664,963) (16,065,157) OTHER INCOME – Net 22 26,788,920 7,890,994 2,556,365 GAIN FROM BARGAIN PURCHASE 4 6,436,907 INCOME (LOSS) BEFORE INCOME TAX (72,675,360) 145,742,370 139,919,369 PROVISION FOR (BENEFIT FROM) INCOME TAX Current Deferred 24 19,794,400 44,884,664 43,339,450 (44,401,706) (24,607,306) (20,669,486) 24,215,178 (3,723,588) 39,615,862 INET INCOME (LOSS) (48,068,054) 121,527,192 100,303,507 OTHER COMPREHENSIVE LOSS Item not to be reclassified to profit or loss Remeasurement loss on retirement benefits liability (net of deferred income tax) (868,167) 16 TOTAL COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO THE PARENT COMPANY (248,068,054) P120,659,025 P100,303,507

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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