Ginebra Corporation operates a branch in Cebu City to which it bills merchandise at an arbitary price representing a mark-up of 33 1/3% above cost. The following data from the books of the Home Office and Branch for the year ended December 31, 2021 given:                                              HOME OFFICE       BRANCH Inventories, Jan. 1                   30, 000               12, 000 Purchases                               245, 000 Shipments to branch              60, 000 Sales                                       280, 000             68, 000 Inventories, Dec. 31                35, 000               15, 000 Shipments from home office                            80, 000 Expenses                                 36, 500              10, 200   Compute the combined net income of the home office and branch.

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Ginebra Corporation operates a branch in Cebu City to which it bills merchandise at an arbitary price representing a mark-up of 33 1/3% above cost. The following data from the books of the Home Office and Branch for the year ended December 31, 2021 given:

 

                                           HOME OFFICE       BRANCH

Inventories, Jan. 1                   30, 000               12, 000

Purchases                               245, 000

Shipments to branch              60, 000

Sales                                       280, 000             68, 000

Inventories, Dec. 31                35, 000               15, 000

Shipments from home office                            80, 000

Expenses                                 36, 500              10, 200

 

Compute the combined net income of the home office and branch.

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