Additional Information: (a) Gross profit rate for 2019 is 50%, which decreased by 5% in 2020 due to increase in cost to produce their products. (b) Income tax rate is 40%. What is the gross profit in 2020? Options: ₱1,008,333 ₱825,000 ₱675,000 ₱444,231
Additional Information: (a) Gross profit rate for 2019 is 50%, which decreased by 5% in 2020 due to increase in cost to produce their products. (b) Income tax rate is 40%. What is the gross profit in 2020? Options: ₱1,008,333 ₱825,000 ₱675,000 ₱444,231
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
VAN DER LINDE CORPORATION have been operating since 2011 and have not issued any new shares since its initial public offering last 2016. Shown below is the incomplete Statements of Comprehensive Income of the Corporation for the years 2019 and 2020.
VAN DER LINDE CORPORATION
STATEMENTS OF COMPREHENSIVE INCOME
Additional Information:
(a) Gross profit rate for 2019 is 50%, which decreased by 5% in 2020 due to increase in cost to produce their products.
(b) Income tax rate is 40%.
What is the gross profit in 2020?
Options:
₱1,008,333
₱825,000
₱675,000
₱444,231
Transcribed Image Text:DECEMBER 31
2020
2019
Net sales
???
???
Cost of goods sold
(8825,000)
???
Gross profit
???
9717,500
Operating expenses
???
(P574,000)
Operating Income
???
B143,500
Finance cost
(840,050)
(B38,310)
Earnings before taxes
???
105,190
Income tax
(843,980)
(842,076)
Net income
???
B63,114
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Recommended textbooks for you
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education