Reference no: EM133162332
Question - Company is subject to an income tax rate of 30%. It has the provided the following data on December 31, 2021:
Income Statement Items for 2021:
Net sales P3,600,000
Cost of goods sold 1,100,000
Operating expenses including depreciation 840,000
Depreciation expense 60,000
Interest expense 100,000
Income tax expense ?
Other information for 2021:
Payment of bank loan 300,000
Dividends paid to stockholders P250,000
Balance Sheet Items
|
|
December 31, 2021
|
December 31, 2020
|
|
Cash and cash equivalents
|
2,000,000
|
P1,750,000
|
|
Accounts receivable
|
670,000
|
410,000
|
|
Inventory
|
430,000
|
220,000
|
|
Supplies
|
18,000
|
12,000
|
|
Accounts payable
|
520,000
|
380,000
|
|
Accrued liabilities
|
72,000
|
53,000
|
|
Property and equipment, net
|
1,700,000
|
2,100,000
|
|
Loans payable
|
1,000,000
|
1,500,000
|
|
Share capital
|
1,000,000
|
1,000,000
|
|
Retained earnings
|
?
|
?
|
Based on the above, answer the following questions for 2021: (Round answers to whole numbers for monetary amounts while for percentages, absolute amounts or decimals round to 2 decimal places. For instance, P85,750, 24.62%, 3.15)
Required -
1. What is the amount net income (loss) for 2021?
2. What is the current ratio in absolute amount or decimals?
3. What is the quick ratio in absolute amount or decimals?
4. What is the total asset turnover in absolute amount or decimals?
5. What is the average age of inventory in days?