The profit or loss section of the statement of comprehensive income of ITS NOT OK TO BE
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Question:
The profit or loss section of the statement of comprehensive income of ITS NOT OK TO BE OK Company for the year ended December 31, 2020 is reproduced below:
Sales | P 6,100,000 |
Cost of goods sold | 3,700,000 |
Gross profit | P2,400,000 |
Gain on sale of equipment | 100,000 |
Salaries expense | -820,000 |
Insurance expense | -380,000 |
Depreciation expense | 220,000 |
Profit before interest and income tax | P1,080,000 |
Interest expense | 120,000 |
Profit before income tax | P960,000 |
Income tax expense | 288,000 |
Profit | P672,000 |
The following information is also available: | |
Accounts receivable, Dec.31 | P120,000 |
Inventory, Dec.31 | 280,000 |
Accounts payable, Jan. 1 | 160,000 |
Salaries payable, Jan.1 | 100,000 |
Interest payable, Dec. 31 | 30,000 |
Income tax payable, Dec. 31 | 18,000 |
Required:
Prepare ITS OK NOT TO BE OK Company’s 2020 Statement of Cash Flows using the direct method.
Related Book For
Managerial Accounting A Focus on Ethical Decision Making
ISBN: 978-0324663853
5th edition
Authors: Steve Jackson, Roby Sawyers, Greg Jenkins
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