Reference no: EM132568972
Question - Manny Company provided the following account balances on December 31, 2X14, which had been adjusted except for income tax expense.
Cash 675,000
Accounts receivable (net) 2,695,000
Inventory 2,185,000
Property, plant, and equipment (net) 10,245,000
Accounts payable and accrued liabilities 1,800,000
Income tax payable 1,500,000
Deferred tax liability 750,000
Share capital 2,500,000
Share premium 3,000,000
Retained earnings, January 1 3,350,000
Net sales and other revenue 15,000,000
Cost and expenses 10,000,000
Income tax expense 2,100,000
Total 27,900,000
Total 27,900,000
The accounts receivable included P1,000,000 due from a customer and payable in quarterly installments of P125,000. The last payment is due December 30, 2X16. During the year, estimated tax payment of P600,000 was charged to income tax expense. The income tax rate is 30% on all types of income.
Required - Compute for the balances of the following on December 31, 2X14.
1. Total current assets
2. Total current liabilities
3. Retained Earnings