Reference no: EM133172034

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)

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?