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Problem #2 Statement of Financial Position

This document contains a practice problem set on statements of financial position with 6 multiple choice problems of varying difficulty. The problems cover calculating net income, general and administrative expenses, cost of goods available for sale, net sales and net purchases, ending inventory, and net sales. The document provides the context and numbers needed to solve accounting problems related to income statements, balance sheets, and the relationship between various financial metrics.

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Jhazz Kyll
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205 views1 page

Problem #2 Statement of Financial Position

This document contains a practice problem set on statements of financial position with 6 multiple choice problems of varying difficulty. The problems cover calculating net income, general and administrative expenses, cost of goods available for sale, net sales and net purchases, ending inventory, and net sales. The document provides the context and numbers needed to solve accounting problems related to income statements, balance sheets, and the relationship between various financial metrics.

Uploaded by

Jhazz Kyll
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Name: Section:

Date: Score:

Problem #2 Statement of Financial Position

Direction: Answer the following problems with correct solution. Write your solution in a one whole
short bond paper.

Easy

1. Learning is Fun Company generated revenues amounting to Php 100,000. Expenses for the year
totaled Php 76,000. How much is the company’s net income for the year?

2. Happy Selling Company’s salaries to sales agents amounted to Php 10,000. Salaries of
accountants amounted to Php 20,000. No other expenses were incurred. How much is the
company’s general and administrative expense?

Medium

3. Happy Selling’s beginning inventory amounted to 250,000. Net purchases amounted to 70,000.
Freight In totaled 15,000. Compute for the company’s cost of goods available for sale.

4. Happy Selling’s Sales amounted to Php 500,000. Sales returns and sales discounts amounted to
Php 30,000 and Php 10,000 respectively. Purchases of the company totaled Php 100,000 while
purchase returns and purchase discounts amounted to Php 20,000 and Php 10,000 respectively.
How much is the company’s Net Sales? Net Purchases?

Difficult

5. Company’s Cost of Goods Sold amounted to Php 285,000. Net cost of purchases totaled Php
85,000. Beginning inventory amounted to Php 250,000. Sales amounted to Php 500,000.
Compute for the company’s Ending Inventory.
.
6. Gross profit of Happy Selling amounted to Php 175,000. Beginning Inventory totaled Php
250,000. Ending Inventory amounted to Php 50,000 while Net Cost of Purchases totaled Php
85,000. Compute for Happy’s Net Sales.

Good luck and God bless!

Do not cheat for God is with you!

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