Reference no: EM133096807

Question - DAPHNE provided the following information for 2020:

Purchases P5,250,000

Purchases returns and allowances 150,000

Rental Income 250,000

Distribution costs:

Freight out 175,000

Salesmen's commission 650,000

Depreciation - store equipment 125,000

Merchandise Inventory, beginning 1,000,000

Merchandise Inventory, end 1,500,000

Sales 7,850,000

Sales returns and allowances 140,000

Sales discount 10,000

Administrative expenses

Officers' salaries 500,000

Depreciation - office equipment 300,000

Freight in 500,000

Income tax 250,000

Loss on sale of equipment 50,000

Purchase discounts 100,000

Dividend revenue 150,000

Loss on sale of investment 50,000

Required - Prepare an income statement of the year using a functional presentation with supporting notes.