Ren Ren Merchandising

Income Statement
For the Year Ended December 31, 2016
               
      Note        

Net Sales     1     ₱ 702,000

Cost of Sales     2       230,000

Gross Profit           ₱ 472,000

Other Income     3       50,000

Total Income           ₱ 422,000

Operating
Expenses              

Distribution Expenses   4 ₱ 65,800    

Administrative Expenses   5   43,400    

Other
Expenses     6   2,600    

Finance Cost     7   2,400   114,200

Net Income           ₱ 307,800

               
Note 1 - Net Sales              

Gross sales           ₱ 782,000

Less: Sales Returns and Allowances     ₱ 32,000    

Sales Discounts       48,000   80,000

Net Sales           ₱ 702,000

               
Note 2 - Cost of Sales            

Merchandise Inventory, beginning         ₱ 180,000

Add: Net Cost of Purchases            

Purchases       ₱ 220,000    
Add: Freight            
in 10,000

Total Cost of Goods Delivered     ₱ 230,000    

Less: Purchases Returns & 34,0
Allowances ₱ 00        
26,0
Purchase Discounts   00   60,000   170,000

Goods Available for Sale         ₱ 350,000

Less: Merchandise Inventory, End           120,000

Cost of Sales           ₱ 230,000

               
Note 3 - Other Income            

Rent Income           ₱ 20,000

Interest Income           30,000

            ₱ 50,000
Note 4 - Distribution Expenses            

Sales Salaries Expense         ₱ 52,000

Depreciation Expense – Store
Equipment         7,800

Utilities Expense – Store           6,000

Total           ₱ 65,800
               
               
Note 5- Administrative Expenses            

Office Salaries Expense         ₱ 34,000

Utilities Expense – Office           4,400

Office Supplies           3,000

Bad Debts Expense           2,000

Total           ₱ 43,400
               
               
               
Note 6- Other Expenses            
Discount
Lost           ₱ 1,000

Loss on Sale of Equipment           1,600

Total           ₱ 2,600
               
Note 7 - Finance Cost            

Interest Expense         ₱ 2,400