1. Learning is Fun Company generated revenues amounting to Php 100,000.

Expenses for the year totaled Php 76,000. How much is the company’s net
income for the year?

Answer: P24,000.

2. Happy Selling’s beginning inventory amounted to 250,000. Net purchases

amounted to 70,000. Freight In totaled 15,000. Compute for the company’s
cost of goods available for sale.

Answer: P335,000.

3. Happy Selling’s Sales amounted to Php 500,000. Sales returns and sales
discounts amounted to Php 30,000 and Php 10,000 respectively. Purchases of
the company totaled Php 100,000 while purchase returns and purchase
discounts amounted to Php 20,000 and Php 10,000 respectively. How much is
the company’s Net Sales? Net Purchases?

Answer: Net sales - P460,000; Net Purchases - P70,000

4. Company’s Cost of Goods Sold amounted to Php 285,000. Net cost of

purchases totaled Php 85,000. Beginning inventory amounted to Php 250,000.
Sales amounted to Php 500,000. Compute for the company’s Ending
Inventory.

Answer: P50,000.

5. Gross profit of Happy Selling amounted to Php 175,000. Beginning Inventory

totaled Php 250,000. Ending Inventory amounted to Php 50,000 while Net
Cost of Purchases totaled Php 85,000. Compute for Happy’s Net Sales.
Answer: P460,000.