question archive Yae Publishing House had a net sales of P57,000

Yae Publishing House had a net sales of P57,000

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Yae Publishing House had a net sales of P57,000.00 for the current month. The operating expenses for the current month amounting to P9,000.00 is divided between Salary Expense, Delivery Expense and Utilities Expense in a 2:3:1 ratio respectively. Their gross margin is 40%, and the paid interest on a bank loan amounting to P2,450.00. Prepare the income statement for the current month of Yae Publishing House. Answer: (Income statement, in the explanation part) Net Income: P11,350.00

 

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Please refer to the explanation section. Comment if you need further explanation.

Step-by-step explanation

Yae Publishing House Income Statement For the month ended xxx Percentage Amount Formula Net sales 100.00% 57,000.00 Cost of sales -60.00% (34, 200.00) 57,000 x 60% Gross margin 40.00% 22,800.00 57000 x 40% Operating expenses Salary expense (3,000.00) Delivery expense (4,500.00) Utilities expense (1,500.00) (9,000.00) Interest expense on bank loan (2,450.00) Net income 11,350.00 SUPPORTING COMPUTATION Breakdown of operating expenses: Ratio Amount Formula Salary expense 2 3,000.00 9000 x 2/6 Delivery expense 4,500.00 9000 x 3/6 Utilities expense 1,500.00 9000 x 1/6 Total 6 9,000.00

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