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Compute the net income

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Reference no: EM133114866

Question - AC Company provided the following information for the year ended December 31, 2021

Contribution - 125,000

Delivery expense - 425,000

Depreciation - delivery truck - 60,000

Depreciation - office - 35,000

Depreciation - store equipment - 25,000

Dividends paid - 450,000

Dividends revenue - 50,000

Doubtful accounts - 30,000

Income tax - 280,000

Freight in - 145,000

Gain on sale of equipment - 10,000

Interest revenue - 20,000

Loss on sale of trading securities - 50,000

Loss from inventory write down - 150,000

Merchandise inventory, Jan 1 - 1,100,000

Office salaries - 950,000

Purchase discounts - 45,000

Purchases - 4,600,000

Retained Earnings, Jan 1 - 550,000

Sales - 8,750,000

Sales returns and allowances - 150,000

Sales salaries - 600,000

Store supplies - 150,000

Inventory at year-end was valued at P850,000 (1,000,000 cost less the 150,000 write down of inventory to net realizable value.)

The company had a prior period error by understating depreciation in 2020 by P200,000.

Required - Compute the net income?

Reference no: EM133114866

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