Question
Company A has been operating for 4 yrs already. Last yr, it opened an agency in Manila. The following amounts are from the agency transactions
Company A has been operating for 4 yrs already. Last yr, it opened an agency in Manila. The following amounts are from the agency transactions for the year ended 2021
Receipts from sales 420,000
Disbursements:
Purchases 385,000
Sales and Commissions 82,000
Rent 30,000
Advertising supplies 27,000
Other Expenses 20,000
There were inventories on hand amounting to P110,000 and unused advertising supplies of 12,000. Moreover, the agency has P112,000 receivables and P75,000 payables as of the end of the period. Company A decided that the agency was only set up as an experiment for one period and would be closed if losses were incurred:
1. The agency's operational profit or loss is :
2. How much is the total amount of sales?
3. How much is the purchases of Company A?
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