Reference no: EM132980850
PROBLEM 1 - In 2005, ABC, Inc. (a hardware retail company) sold 10,000 units of its product at an average price of PhP20,000 per unit. The company reported estimated Returns and Allowances in 2005 of PhP10,000,000. ABC actually purchased 11,000 units of its product from its manufacturer in 2005 at an average cost of PhP15,000 per unit. ABC began 2005 with 900 units of its products in inventory (carried at an average cost of PhP15,000 per unit). Operating expenses (excluding depreciation) for ABC, Inc. in 2005 were 20,000,000 and depreciation expense was PhP5,000,000. ABC had PhP100,000,000 in debt outstanding throughout all of 2005. This debt carried an average interest rate of 10 percent. Finally, ABC's tax rate was 40 percent. ABC's fiscal year runs from January 1 through December 31. Given this information, construct ABC's 2005 income statement.
PROBLEM 2 - Please prepare income statement for the Wear Me Company (a clothing retailer) for the year ending December 31, 2015 given the information below:
Advertising expenditures 68,000
Beginning Inventory 256,000
Depreciation 78,000
Ending Inventory 248,000
Gross Sales 3,210,000
Interest Expense 64,000
Lease Payments 52,000
Management Salaries 240,000
Materials Purchases 2,425,000
R&D expenditures 35,000
Repairs & Maintenance costs 22,000
Returns and allowances 48,000
Taxes 51,000
|
How much income would abc report from its investment
: Assuming that ABC's 30% investment in XYZ did not allow it to exercise significant influence, how much income would ABC report from its investment
|
|
What rate of interest does paul need to receive
: Paul has $2,000 to invest today and wants to triple his money in the next 10 years. What rate of interest does Paul need to receive to make this happen
|
|
Calculate the value of opening direct materials inventory
: A manufacturing firm has provided the following information on their production: Calculate the value of Opening Direct Materials Inventory
|
|
What the initial amount of the newly reclassified investment
: On January 1, 20X1, ABC acquired 5,000 of XYZ's bonds denominated at P1,000, What the initial amount of the newly reclassified investment
|
|
Prepare income statement for the wear me company
: Please prepare income statement for the Wear Me Company (a clothing retailer) for the year ending December 31, 2015
|
|
What annual amount can james withdraw
: Assume an annual interest rate of 6% p.a, what annual amount, in present value terms, can James withdraw for the first five years of his retirement
|
|
Prepare the notional journal entry
: Prepare notional journal entry, as at 31 March 2020, to eliminate the Parent Ltd asset 'Investment in Sub Ltd' and to eliminate the parent's portion of equity
|
|
Implementing the proposed discount policy
: Annual credit sales: P25,200,000. What is the net advantage (disadvantage) of implementing the proposed discount policy
|
|
What is the investment balance at December
: DURIAN CORP. purchased 40% of Associate Company's outstanding ordinary shares on January 2, 2012, for P270 million. What is the investment balance at December
|