How much was paid for inventory purchases

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Question - You are examining the financial statements of URMYCPA INC for the year ended December 31, 2017. The company maintain its books on a semi-basis. Purchase and sales are recognized on an accrual basis while other operating expenses are kept on cash basis. The company's book keeper presented to you a draft of its statement of income for the year under audit:

Sales P600,000

Cost of Sales 360,000

Gross profit 240,000

Other Expenses 29,000

Depreciation Expense (166,000)

Interest Expense (20,000)

Net Income 25,000

Additional Information:

-All purchases of inventory are on account and other expense reflect those expenses paid in cash during the period.

-The company had open invoice from suppliers amounting to P120,000 on December 31, 2017 and 116,000 on January 1, 2017.

-The company had outstanding invoices (uncollected invoices) to customers amounting to P96,000 on January 1, 2017 and 110 on December 31, 2017.

-Inventory taking at the end of each year revealed that inventory on hand on December 31, 2016 amounted to P 186,000 while inventory on December 31, 2017 was P174,000.

Required -

1. How much was paid for inventory purchases?

2. How much was received from customers in 2017?

Reference no: EM133065440

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