Reference no: EM132979940

Question - During the year 2021, the Karl Company had generated total sales revenue of P1,850,000, of which P1,750,000 were collected during the year, including collections of P250,000 sales revenue made in 2020.

The company purchased goods costing P1,250,000, of which P1,050,000 were paid to merchandise suppliers during the year, including payment for goods purchased in 2020 for P180,000. The inventory increased by P65,000.

Included in P375,000 operating expenses for the year was depreciation of P65,000. Accrued operating expenses decreased by P45,000 for the year.

The company's interest expense and income tax expense for the year amounted to P45,000 and P73,500, respectively. There were no accrued or prepayment items for both interest expense and income tax expense. Income tax rate is 30%.

Required -

Q1. How much is the accounts receivable, December 31/end?

Q2. How much is accounts payable, December 31/end?

Q3. How much is cost of goods sold?

Q4. How much is the net cash flows from operating activities?

Q5. How much is the net income for the period?