BUCOLIC RURAL Co. uses the "installment sales method." Information on BUCOLIC's transacti during 20x1 and 20x2 is shown below: 20x1 20x2 2,000,000 1,200,000 Installment sales 2,400,000 Cost of sales 1,320,000 Gross profit Cash collections from: 800,000 1,080,000
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How much is the total realized gross profit in 20x2?
a. 160,000
b. 432,000
c. 592,000
d. 642,000
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Solved in 2 steps
- HC uses installment sales method in revenue recognition. The following information is provided in the records of Hale: 20X1 20X2 20X3 Sales P1,500,000 P1,250,000 P2,350,000 Cost of Sales 900,000 780,000 1,057,500 Cash Collections From 20x1 Sales 50,000 70,000 670,000 From 20x2 Sales 230,000 365,000 From 20x3 Sales 124,000 REQUIRED: Compute for the following: 1. Adjusted deferred gross profit balance in 20x1 2. Realized gross profit in 20x1 3. Adjusted deferred gross profit balance in 20x2BUCOLIC RURAL Co. uses the "“installment sales method." Information on BUCOLIC's transactions during 20x1 and 20x2 is shown below: 20x1 20x2 Installment sales 2,000,000 2,400,000 Cost of sales 1,200,000 1,320,000 Gross profit Cash collections from: 800,000 1,080,000 20x1 sales 800,000 400,000 20x2 sales 960,000 How much is the total realized gross profit in 20x2?Hale Corporation uses installment sales method in revenue recognition. The following information is provided in the records of Hale: 20X1 20X2 P1,250,000 P2,350,000 780,000 20X3 Sales Cost of Sales P1,500,000 900,000 1,057,500 Cash Collections From 20x1 Sales From 20x2 Sales From 20x3 Sales 50,000 70,000 230,000 670,000 365,000 124,000 REQUIRED: Compute for the following: 1. Adjusted deferred gross profit balance in 20x1 2. Realized gross profit in 20x1 3. Adjusted deferred gross profit balance in 20x2 4. Total realized gross profit in 20x2s 5. Adjusted deferred gross profit balance in 20X3 6. Total realized gross profit in 20x3 7. Installment receivable balance as of 20x3
- Portia Co. uses the installment method of income recognition. The entity provided the following pertinent data:20x1 20x2 20x3Installment sales P600,000 P750,000 P720,000Cost of goods sold 450,000 570,000 504,000Balance of deferred gross profit at year-end20x1 105,000 30,000 -20x2 108,000 18,00020x3 144,000 REQUIRED:1. Total balance of Installment Receivable on December 31, 20x3 ____________ Reginald Company, which began operations on January 5, 20x1, appropriately uses the install method ofrevenue recognition. The following information pertains to the operations for 20x1 and 20x2:20x1 20x2Sales P600,000 P900,000Collections from:20x1 sales 200,000 100,00020x2 sales 300,000Accounts written off from:20x1 sales 50,000 150,00020x2 sales 300,000Gross profit rates 30% 40% REQUIRED:2. Deferred gross profit on December 31, 20x2 ______________3. Realized gross profit in 20x2 ______________Presented below are the information taken from the books of NMIXX Co. 2022 2023 Sales Regular P 125,000 P 187,500 Installment 62,500 100 000 Cost of goods sold: Regular 75.000 112,500 Installment 31,250 45,000 Selling expenses 25,000 31,250 Collection on accounts from Regular sales 100,000 137,500 Installment sales - 2022 37.500 25,000 Installment sales - 2023 62,500 How much is the Realized gross profit in installment and net income for the year 2023?PC uses the installment method of income recognition. The entity provided the following pertinent data: 20x1 20x2 20x3 Installment sales P600,000 P750,000 P720,000 Cost of goods sold 450,000 570,000 504,000 Balance of deferred gross profit at year-end 20x1 105,000 30,000 - 20x2 108,000 18,000 20x3 144,000 COMPUTE Total balance of Installment Receivable on December 31, 20x3
- Portia Co. uses the installment method of income recognition. The entity provided the following pertinent data: 20x1 20x2 20x3 Installment sales P600,000 P750,000 P720,000 Cost of goods sold 450,000 570,000 504,000 Balance of deferred gross profit at year-end 20x1 105,000 30,000 - 20x2 108,000 18,000 20x3 144,000 REQUIRED: Total balance of Installment Receivable on December 31, 20x3 =Rusty, Inc. reports gross profit on installment basis. The following data are available: 20X1 20X2 20X3 Sales P480,000 P500,000 P600,000 Cost of Sales 360,000 362,500 432,000 Gross profit 120,000 137,500 168,000 Cash Collections From 20x1 Sales 90,000 150,000 145,000 From 20x2 Sales 95,000 160,000 From 20x3 Sales 125,000 Defaults Unpaid balance of 20x1 installment contracts 25,000 30,000 Value assigned to repossessed merchandise 13,000 12,000 Unpaid balance of 20x2 installment contracts 32,000 Value assigned to repossessed merchandise 18,000 REQUIRED: Total realized gross profit before loss on repossession for 20x3 Loss on repossession for 20x3The following accounts of Rex Company are as follows: Sales P480,000; Cost of goods sold P300,000; Sales discounts P20,000; Sales returns and allowances P15,000; Purchase discounts P5,000; Purchase returns and allowances P7,000; Selling Expenses P40,000; General & Administrative expense P45,000; Interest income P5,000. What is the net income? P60,000 P65,000 P55,000 P180,000
- Two companies Binky and Smokey trade in the same market. Their financial statements for the year ended 31 October 20Xx6 are summarised below: STATEMENTS OF PROFIT OR LOSS FOR THE YEAR ENDED 31 OCTOBER 20X6 Binky Smokey S000 $000 $00 $000 Sales revenue 284 305 Cost of sales (155) (151) 154 Gross profit Expenses Administrative Selling and distribution Depreciation Loan note interest 129 24 37 35 53 12 (68) (107) Net profit 61 47 STATEMENTS OF FINANCIAL POSITION AS AT 31 OCTOBER 20X6 Binky $000 Smokey Assets S000 $000 $000 Non-current assets At cost 320 515 Accumulated depreciation (75) (96) 245 419 Current assets Inventory Receivables 91 293 46 75 Bank 64 15 201 383 446 802 Equity and liabilities Share capital and reserves Share capital Retained carnings 150 250 108 177 10% Loan note Current liabilities Total equity and liabilities 50 188 446 802 Task 1 Complete the following table to show the main ratios for Binky and Smokey Ratio Gross profit % Binky Formula Smokcy Net profit % Asset…Data for the three operating segments of Polyglot Company for the fiscal year ended June 30, 2006 were as follows (amounts in thousands): Alpha Beta Gamma TotalSales to outside customers $400 $500 $600 $1,500Intersegmental sale 50 40 30 120Traceable Expenses Intersegmental purchases 60 20 40 120Other 200 300 500 1,000Nontraceable expenses 150 Prepare a working paper to compute revenue and segment profit or loss for each segment. Nontracable expenses are allocated using the follow percentages: Alpha 27%; Beta 33%; Gamma 40%.Corporation.Gross income $25,240,000Total sales 24,324,000Total credit sales 18,785,000Net income 2,975,000Cost of goods sold 12,600,000Total assets 10,550,000Average inventory 2,875,000Average receivables 3,445,000a. Compute the receivable turnover ratio.b. Compute the inventory turnover ratio.c. Compute the asset turnover ratio.