Reference no: EM132856874

Brooks Company reported that the financial records were destroyed by fire at the end of the year.  However, certain statistical data related to the income statement are available.

Interest expense P 20,000

Cost of goods sold 2,000,000

Sales discount 100,000

The beginning inventory was P 400,000 and decreased 20% during the year. Administrative expenses are 25% of cost of goods sold but only 10% of gross sales.

Four - fifths of the operating expenses relate to sale activities.

Problem 1: What is the amount of gross sales?

a. P 5,000,000         c. P 1,500,000

b. P 2,500,000         d. P 2,520,000

Problem 2: What is the total amount of operating expenses?

a. 2,000,000         c. P 2,500,000

b. 1,500,000       d. P 2,520,000

Problem 3: What is the income before tax for the current year?