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Cost of goods sold amounted to P3,500,000. The beginning inventory is P500,000 greater than the ending inventory, the latter being equivalent to 20% of purchases

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Cost of goods sold amounted to P3,500,000. The beginning inventory is P500,000 greater than the ending inventory, the latter being equivalent to 20% of purchases during the period. Gross profit of the company is 30% of net sales. Total operating expense amounted to 60% of the gross profit while sales returns and allowances amounted to 2% of net sales. The company is subject to income tax rate of 35%

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