JUAN JOHN LENARD P.

BSA 601

NUMBER 1
BEGINNING, INSTALLMENT RECEIVABLE 20X2(545,000/.28) 1,946,428.57
LESS: ENDING, INSTALLMENT RECEIVABLE 20X2 (1,050,000)
COLLECTION 896,428.57
MULTIPLY: GP RATE 0.28
REALIZED GROSS PROFIT, 20X2 251,000

DEFERRED GROSS PROFIT- BEFORE ADJUSTIMENT 545,000

LESS:REALIZED GROSS PROFIT, 20×2 (251,000)
ADJUSTED DEFERRED GROSS PROFIT, 20X2 294,000

NUMBER 2
BEGINNING, INSTALLMENT RECEIVABLE 20X1 (370,000/.24) 1,321,428.57
LESS:ENDING, INSTALLMENTRECEIVABLE 20X1 (675,000)
COLLECTION 646,428.57
MULTIPLY:GP RATE 0.24
REALIZED GROSS PROFIT, 20X1 155,142.86

BEGGING, INSTALLMENT RECEIVABLE 20X2 (545,000/28) 1,946,428.57

LESS:ENDING, INSTALLMENT RECEIVABLE 20X2 (1,050,000)
COLLECTION 896,428.57
MULTIPLY: GP RATE 0.28
REALIZED GROSS PROFIT, 20X2 251,000

REALIZED GROSS PROFIT, 20X1 155,142.86

REALIZED GROSS PROFIT, 20X2 251,000
TOTAL REALIZED GROSS PROFIT 406,142.86
NUMBER 3
20X1 20X2 20X3
GROSS PROFIT 120,000 137,500 168,000
DIVIDE SALE 480,000 500,000 600,000
GROSS PROFIT RATE 0.25 0.275 0.28

COLLECTION, 20X1 SALES (145,000×25%) 36,250

COLLECTION 20X2 SALES (160,000×27.5%) 44,000
COLLECTION 20X3 SALES (125,000×285) 35,000
TOTAL REALIZED GROSS PROFIT, 20X3 115,250

NUMBER 4
UNPAID BALANCE, 20X1 INSTALLMENT CONTRACTS 30,000
UNPAID BALANCE, 20X2 INSTALLMENT CONTRACTS 32,000
LESS: DEFERRED GROSS PROFIT 20X1 (30,000×25%) (7,500)
DEFERRED GROSS PROFIT, 20X2 (32,000×27.5%) (8,800)
COST OF REPOSSESSION 45,700
LESS: VALUE ASSIGNED TO REPOSSESSED, 20X1 (12,000)
LESS: VALUE ASSIGNED TO REPOSSESSED, 20X2 (18,000)
LOSS ON REPOSSESSION, 20X3 15,700

DOWN PAYMENT (6,800,000×30%) 2,040,000

ADD: MONTHLY INSTALLMENT (3×240,000) 720,000
WHOLESALE VALUE OF OLD CAR 960,000
VALUE OF REPOSSED CAR 2,400,000
#6 TOTAL REVENUE/TOTAL COLLECTION 6,120,000
LESS: COST OF CAR (5,205,000)
RECONDITIONING COST (180,000)
OPPORTUNITY COST [(5,205,000×12%)/4] (156,150)
#7 REALIZED GROSS PROFIT, 20X1 578,850

GROSS PROFIT RATE:

REALIZED GROSS PROFIT, 20X1 578,850
DIVIDE: TOTAL REVENUE/TOTAL COLLECTION 6,120,000
#5 GROSS PROFIT RATE, 20X1 9.46%
NUMBER 8
20X1 20X2 20X3
INSTALLMENT RECEIVABLE
FOR 20X1 48,125,000
FOR 20X2
20X1 1,411,667
20X2 8,537,500
FOR 20X3
20X2 2,835,938
20X3 9,728.125

INSTALLMENT RECEIVABLE, Beg 1,411,667 8,537,563 9,949,167

INSTALLMENT RECEIVABLE, 20X3 (2,835,938) (9,728,125)
CASH COLLECTION 1,411,667 5,701,563 221,042 7,334,271

NUMBER 9
INSTALLMENT RECEIVABLE, Beg 1,411,667 8,537,563 9,949,167
INSTALLMENT RECEIVABLE, 20X3 (2,835,938) (9,728,125)
CASH COLLECTION 1,411,667 5,701,563 221,042 7,334,271
GROSS PROFIT RATE 28% 30% 32%
REALIZED GROSS PROFIT 395,267 1,710,469 70,733 2,176,469

NUMBER 10
INSTALLMENT RECEIVABLE, 20X1 1,411,667
INSTALLMENT RECEIVABLE, 20X2 8,537,500
INSTALLMENT RECEIVABLE BALANCE AS OF 2013 9,949,167
NUMBER 11
20X1 20X2
INSTALLMENT RECEIVABLE, 20X1 1,200,000 4,250,000
INSTALLMENT RECEIVABLE, 20X1 (150,000)
INSTALLMENT RECEIVABLE, 20X2 (2,000,000)
DEFAULTED BALANCES (77,500)
COLLECTION 972,500 2,250,000

NUMBER 12
GROSS PROFIT RATE,20X1 45%
INSTALLMENT SALES 4,250,000
COST OF INSTALLMENT SALES
BEGINNING INVENTORY 700,000
PURCHASES 5,550,000
ENDING INVENTORY (950,000)
REPOSSESSION 30,000
COST OF REGULAR SALES 2,695,000 (2,635,000)
GROSS PROFIT 1,615,000
GROSS PROFIT RATE, 20X2 38%

NUMBER 13
VALUE OF REPOSSESSION 30,000
LESS:UNPAID BALANCE (77,500)
DEFERRED GROSS PROFIT (34,875)
LOSS ON REPOSSESSION (82,375)

NUMBER 14
20X1 20X2
COLLECTION 972,500 2,250,000
GROSS PROFIT RATE 45% 38%
TOTAL 437,625 855,000
TOTAL REALIZED GROSS PROFIT 1,292,625

NUMBER 15
REALIZED GROSS PROFIT 1,292,625
LESS:OPERATING EXPENSE (1,250,000)
NET INCOME, 20X2 42,625