Reference no: EM132811163

Michael Scofield had a net income of 875,000.

Depreciation expense=P350,000

(30% to office), rent expense=P500,000 (40% to store),

Advertising expense=P200,000,

Allowance for Bad debts=P15,000,

Bad debts expense=P5,000,

Utilities Expense=P100,000 (60% to office),

Freight in=P50,000, Freight out=P10,000 and interest expense=P17,500.

Gross profit rate is 25%, while tax rate was 30%.

Problem 1: How much is Scofield's Net Sales?

Problem 2: How much is Scofield's Earnings before Interest and Tax?

Problem 3: How much is Scofield's Selling Expenses?

Problem 4: How much is Scofield's General & Administrative Expenses?

Problem 5: How much is Scofield's Tax Expense?