E The following data are taken from the books of Tides Corporation: Gross profit from business Business expenses 2012 P1,000,000 P1,100,000 2013 1,500,000 1,510,000 2014 1,700,000 1,550,000 2015 1,850,000 1,875,000 2016 2,320,000 2,280,000 The taxable Income in 2016 is: a. P40,000 c. P 25,000 b. P15,000 d. None
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- 1. A company operating since 2010, reported its income statement for the year 2018 as follows: Sales .3,300,000 Cost of sales. -1.720.000 1,580,000 1.100.000 .480,000 Gross income. Operating Expenses. Net Income. If the company is a sole proprietorship and using the 8% Gross Receipts Tax Income Tax is: a. 126,400 b. 38,400 C. 264,000 d. Answer not given - 50,000 2. Mr. De Goma, resident citizen and working in a company reported the following for the year: Salary . Overtime Pay.. 13th month Pay. 285,000 *... 40,000 15,000 Bonus Pay. 120,000 455,000 Total. Income tax is: a. 91,000 b. 43,750 C. 41,000 d. 24,000The following information is available for Sunland Corporation for the year ended December 31, 2022: sales revenue $840,000, other revenues and gains $91,000, operating expenses $101,000, cost of goods sold $466,000, other expenses and losses $30,500, and preferred stock dividends $40,950. The company's tax rate was 20%, and it had 70,000 common shares outstanding during the entire year. (a) Your Answer Correct Answer Your answer is partially correct. Prepare a corporate income statement. (List other revenues before other expenses.)Using the financial data for Key Wahl Industries Sales Net Profit After Tax Total Assets Total Liabilities O.50 02 O.75 $4,500,000 What is the debt ratio? O.075 $337,5000 $6,750,000 $ 3,375,000
- The following financial statements relate to Inna Projects Limited:Statement of Comprehensive Income for the year ended 30 June 2018R’000Sales (Credit)8 000Cost of sales2 000Gross profit6 000Operating expenses2 800Operating profit3 200Interest expense220Profit before tax2 980Tax (25%)745Profit after tax2 235Statement of Financial Position as at 30 June 2018ASSETSR’000R’000Non-current assets45 320Current assets13 980Inventory5 080Debtors7 600Bank1 30059 300EQUITY AND LIABILITIESOwners’ equity54 040Capital39 000Retained income15 040Non-current assets3 000Current liabilities2 260Creditors2 26059 300Note: Inventory on 1 July 2017 amounted R3 000 000.Required:Calculate the following ratios and where applicable round off answers correctly to two decimal places:2.1 Gross margin (5)2.2 Inventory turnover (5)2.3 Debtors collection period (5)2.4 Return on own capital (5)2.5 Acid test ratio (5The records of a domestic corporation organized in 2010 show: 2016 2017 2018 2019 Net Sales 3,925,000 4,810,000 5,939,000 6,945,000 Cost of sales 1,950,000 2,710,000 3,465,000 4,180,000 Business expenses including bad debts written off 1,900,000 2,000,000 2,520,000 2,400,000 Other taxable income 25,000 100,000 26,000 35,000 Recovery of bad debts written off: In 2016 60,000 In 2017 10,000 The income tax payable for 2016, 2017, 2018, and 2019: a. ₱ 30,000, ₱78,000, ₱0, ₱73,000 b. ₱ 40,000, ₱68,000, ₱50,000, ₱67,000 c. ₱ 58,500, ₱60,000, ₱18,000, ₱67,000 d. None of the above.Consider the following income statement for the Heir Jordan Corporation: HEIR JORDAN CORPORATION Income Statement Sales $ 43,500 Cost 34,100 Taxable income $ 9,400 Taxes (24%) 2,256 Net income $ 7,144 Dividends $ 2,515 Addition to retained earnings 4,629 The balance sheet for the Heir Jordan Corporation follows. HEIR JORDAN CORPORATION Balance Sheet Assets Liabilities and Owners’ Equity Current assets Current liabilities Cash $ 2,550 Accounts payable $ 2,400 Accounts receivable 3,800 Notes payable 5,100 Inventory 9,000 Total $ 7,500 Total $ 15,350 Long-term debt $ 24,000 Owners’ equity Fixed assets Common stock and paid-in surplus $ 16,000 Net plant and equipment $ 38,000 Retained earnings 5,850 Total $ 21,850 Total assets $ 53,350 Total liabilities and owners’ equity $ 53,350 Prepare a…
- The accounting income (loss) figures for Pronghorn Corporation are as follows: 2015 $162,000 2016 242,000 I 2017 82,000 2018 (162,000) 2019 (382,000) 2020 2021 140,000 154,000 Accounting income (loss) and taxable income (loss) were the same for all years involved. Assume a 30% tax rate for 2015 and 2016, and a 25% tax rate for the remaining years. Prepare the journal entries for each of the years 2017 to 2021 to record income tax expense and the effects of the tax loss carrybacks and carryforwards, assuming Pronghorn Corporation uses the carryback provision first. All income and losses relate to normal operations and it is more likely than not that the company will generate substantial taxable income in the future.K McDaniel and Associates, Inc. reported the following amounts on its 2024 income statement: Year Ended December 31, 2024 Net income Income tax expense Interest expense $ 22,950 6,600 3,000 What was McDaniel's times-interest-earned ratio for 2024? OA. 7.65 OB. 10.85 OC. 9.85 OD. 8.65 point(s) possible ...Consider the following income statement for the Heir Jordan Corporation: HEIR JORDAN CORPORATIONIncome Statement Sales $ 42,900 Costs 33,900 Taxable income $ 9,000 Taxes (21%) 1,890 Net income $ 7,110 Dividends $ 2,509 Addition to retained earnings 4,601 The balance sheet for the Heir Jordan Corporation follows. HEIR JORDAN CORPORATIONBalance Sheet Assets Liabilities and Owners’ Equity Current assets Current liabilities Cash $ 2,250 Accounts payable $ 4,000 Accounts receivable 5,100 Notes payable 8,000 Inventory 8,000 Total $ 12,000 Total $ 15,350 Long-term debt $ 22,000 Owners’ equity Fixed assets Common stock and…
- The following are the financial statement JNC Ltd. for the year ended 31 March 2020: JNC Ltd. Income statement For the year ended 31 March 2020 $”M” Revenue 1276.50 Cost of sales (907.00) 369.50 Distribution costs (62.50) Administrative expenses (132.00) 175.00 Interest received 12.50 Interest paid (37.50) 150.00 Tax (70.00) Profit after tax 80.00 JNC Ltd. Statement of financial position as at 31 March 2020 2019 $”M” $”M” ASSETS: Non- current assets: Property, plant and equipment 190 152.5 Intangible assets 125 100 Investments 12.5 Current assets: Inventories 75 51 Receivables 195 157.5 Short-term investment 25 Cash in hand 1 0.5 Total assets 611 474 Equity and liabilities: Equity: Share capital (10 million ordinary shares of $ 10 per value) 100 75 Share premium 80 75 Revolution reserve 50 45.5 Retained earnings 130 90 Non-current liabilities: Loan 85 25…Comprehensive Problem TLC Company wus eatablishied on January 1, 2015 and is enguged in the manufacture of farm toolu. The company makes une of 365 days in its computation for some of the ratios. You will find below their eumparative SFP & SCI for two years TLC Company Comparative Financial Statement For Year 2015 and 2016 2016 2015 Anseta Cash Accounts Receivahle Trailing Securitien Inventaries 400,000 100,000 20,000 290,000 120,000 40,000 60,000 10,000 80,000 Prepaid Expenes 20,00) Total Current Assets 620,000 520,000 Tatal Non-Current Assets 300,000 200,000 720,000 Total Asseta 920,000 Liabilities 18 Total Current Liabilities Tutal Non-Current Liahities Owner's Equity 50,000 450,000 100,000 350,000 Total Owner's Equity Total Liahilities and Owner's Equity 420,000 300,000 920,000 720,000The summarized revenues and expenses information for Canadian Travel Inc. for the year 2018 states:1cost of goods sold CAD180,000, sales revenue CAD400,000, other (non-operating) revenues and gainsCAD30,000, sales general and administration expenses of CAD100,000. Net interest income is (+)CAD10,000 and the corporate income tax rate is 26,50%: Prepare the Income (i.e. Pro t & Loss) Statement of Holiday Inc., showing Gross Pro t, OperatingPro t, Other gains/(losses), Earnings before Interest and Tax (EBIT), Pro t before Tax and NetIncome i.e. Net Pro t. Point out and explain which of all these revenue and expense items may imply/include non-cashtransactions or accounting records. If the ending balance in Retained Earnings on Canadian Travel Inc.s 31. Dec 2017 balance sheetwas $1,000,000 and a cash dividend of $10,000 was paid in 2018, using the above information showthe balance sheet entries of Retained Earnings as of 31. Dec 2018.In addition to the above, assume that Canadian…