Beb's Trinity Store's annual income statement for 2019 is shown in the table below. Beb worked full-time in the business and invested Php300,000 to acquire it and stock it with goods. 

 

turned down a Php250,000-per-year compensated position as the manager of another store. During the year, he did not pay himself a wage.

A.    What is Beb's Trinity Store's accounting profit? 

B.     What type of cost is associated in the table above? 

C.    Assume that the market interest rate is 8%, recalculate Trinity Store's total costs.

D.    What is the economic profit (or loss) of Beb's Trinity Store in 2019?

Transcribed Image Text:

Revenues Sales Inventory Adjustment Total Revenues Php550,000 20,000 Costs Wholesale clothing Equipment Labor Utilities and insurance Total Costs Php300,000 20,000 150,000 10,000 Revenues Sales Inventory Adjustment Total Revenues Php550,000 20,000 Costs Wholesale clothing Equipment Labor Utilities and insurance Total Costs Php300,000 20,000 150,000 10,000

Answer rating: 100% (QA)

Answer Question A Accounting profit is the difference between the total revenue and total explicit c... View the full answer