ON JANUARY 6, 2023, AN INSTALLMENT SALE IN 2022 WAS DEFAULTED AND THE MERCHANDISE WAS REPOSSESSED....
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
ON JANUARY 6, 2023, AN INSTALLMENT SALE IN 2022 WAS DEFAULTED AND THE MERCHANDISE WAS REPOSSESSED. THE FAIR MARKET VALUE OF THE MERCHANDISE AFTER RECONDITIONING COSTS AMOUNTED TO P15,000. THERE IS A 10% NORMAL PROFIT BASED ON ESTIMATED RESALE VALUE, THE CORPORATION INCURRED P3,000 DISPOSAL COSTS AND P5,000 RECONDITIONING COST. RELATED INSTALLMENT RECEIVABLE BALANCE ON JANUARY 6, 2023 WAS P17,000. THE OPERATING EXPENSES INCURRED IN 2022 AND 2023 AMOUNTED TO P50,000 AND P100,000 RESPECTIVELY. WHAT IS THE GROSS PROFIT RATE IN 2022? ON JANUARY 6, 2023, AN INSTALLMENT SALE IN 2022 WAS DEFAULTED AND THE MERCHANDISE WAS REPOSSESSED. THE FAIR MARKET VALUE OF THE MERCHANDISE AFTER RECONDITIONING COSTS AMOUNTED TO P15,000. THERE IS A 10% NORMAL PROFIT BASED ON ESTIMATED RESALE VALUE, THE CORPORATION INCURRED P3,000 DISPOSAL COSTS AND P5,000 RECONDITIONING COST. RELATED INSTALLMENT RECEIVABLE BALANCE ON JANUARY 6, 2023 WAS P17,000. THE OPERATING EXPENSES INCURRED IN 2022 AND 2023 AMOUNTED TO P50,000 AND P100,000 RESPECTIVELY. WHAT IS THE GROSS PROFIT RATE IN 2022?
Expert Answer:
Answer rating: 100% (QA)
To calculate the gross profit rate in 2022 we need to first calculate the gross profit on th... View the full answer
Related Book For
International Financial Reporting a practical guide
ISBN: 9781292439426
8th Edition
Authors: Alan Melville
Posted Date:
Students also viewed these finance questions
-
A bakery with a December 31 st year end purchased new equipment on October 31 st 2000 for $10,000. This was their first equipment purchase. Required: What are the tax consequences if the equipment is...
-
Your preparer tax identification number (PTIN) is PO0389571. Your Firm ik For) Jones and Miller's address is 230 Hollister Avenue - San Francisco, CA 94131 and its phone number is (650) 686-7777....
-
Multiple Choice: Select the best answer and place it on the line next to the question number. ____ 1. Bond X and Bond Y are both issued by the same company. Each of the bonds has a maturity value of...
-
The monthly earnings of financial analysts are normally distributed with a mean of $5,700. If only 6.68 % of the financial analysts have a monthly income of more than $6,140, what is the value of the...
-
George Young Industries (GYI) acquired industrial robots at the beginning of 2015 and added them to the company's assembly process. During 2018, management became aware that the $1 million cost of...
-
Penny Stafford, the owner of Belvi Coffee and Tea Exchange, located in Bellevue, Washington, brought an antitrust suit against Starbucks. She alleged that through its exclusive leases, Starbucks bans...
-
Using scrap materials accounting information FLC Corporation manufactures wooden picnic tables which are sold to department stores and garden stores. Recently the company accepted an offer to make...
-
Data pertaining to the current position of Boole Company are as follows:Cash................... $240,000Temporary investments............ 120,000Accounts and notes receivable (net)..........
-
Financial ratios for Boeing company. I need help with this by Sunday afternoon latest. Assignment Industry averages and financial ratios paper on Boeing. Find a publicly-traded company using a...
-
A fraction nonconforming control chart with n = 400 has the following parameters: UCL = 0.0962; Center line = 0.0500; LCL = 0.0038. (a) Find the width of the control limits in standard deviation...
-
What are the leading cause of death in the elderly:
-
Longman, Inc. manufactures lead crystal glasses. The standard direct labor time is \(1 / 5\) hour per glass, at a price of \(\$ 14\) per hour. The actual results for the production of 7,000 glasses...
-
From the viewpoint of a stockholder, which of the following relationships do you consider of least significance? a. The return on assets consistently is higher than the industry average. b. The...
-
In each of the past five years, the net sales of Plaza Co. have increased at about half the rate of inflation, but net income has increased at approximately twice the rate of inflation. During this...
-
Longman, Inc. is a manufacturer of lead crystal glasses. The standard materials quantity is 1 pound per glass at a price of \(\$ 0.40\) per pound. The actual results for the production of 7,000...
-
Which of the following usually is least important as a measure of short-term liquidity? a. Quick ratio. b. Debt ratio. c. Current ratio. d. Cash flows from operating activities.
-
On July 14, 2018, Hampton Flower Shop, Inc., sold $3,000 of Inventory (cost is $1,330) on account to one of its customers. The terms were 1/10, n/30, FOB destination. On July 16, Hampton Flower Shop,...
-
The Taylor's series expansion for cosx about x = 0 is given by: where x is in radians. Write a user-defined function that determines cosx using Taylor's series expansion. For function name and...
-
(a) Identify the circumstances in which a cost formula may be used to establish the cost of inventories.(b) A company's inventories at 30 April 2024 include 11,000kg of a chemical which is utilised...
-
A company is contracted to construct an asset for a customer. The contract price is 5m but the contract stipulates that the company will receive an incentive payment of a further 1m if the asset is...
-
On 1 April 2023, Pedantic acquired 60% of the equity share capital of Sophistic in a share exchange of two shares in Pedantic for three shares in Sophistic. The issue of shares has not yet been...
-
If money is owed to the auditor, what can an auditor do and what risks are involved?
-
Internal Control Procedures for Cash Receipts} Corey and Dee Post are planning to open and operate a 24 -hour convenience store near a university campus. Corey and Dee are concerned that part of the...
-
What is a principal auditor? What must he consider when the work of another auditor is used?
Study smarter with the SolutionInn App