FABM 2

LEARNING ACTIVITIES – Statement of Comprehensive Income (SCI)

Focus on single-step approach SCI and the general administrative and selling expenses
parts of the multi-step SCI.
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?

2. Happy Selling Company’s salaries to sales agents amounted to Php 10,000. Salaries of
accountants amounted to Php 20,000. No other expenses were incurred. How much is the
company’s general and administrative expense?

Focus on the computation of net sales, net purchases, net cost of purchases, cost of goods
available for sale and Cost of Goods Sold.
1. Happy Selling’s beginning inventory amounted to 250,000. Net purchases amounted to
70,000. Freight In totalled 15,000. Compute for the company’s cost of goods available
for sale.
2. 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?

Focus on the computation of elements within the Cost of Goods Sold wherein the Cost of
Goods Sold is given or the net income is given.
1. 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.
2. 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.

ANSWERS:

1. Revenues - Expenses = Net Income

100,000 - 76,000 = 24,000

24,000 - Company’s net income for the year

2.
20,000 + 10,000 = 30,000 - company’s general and administrative expense
1.
250,000 + 70,000 + 15,000 = 335,000 - company’s cost of goods for sale
2.
30,000 + 10,000 = 40,000
500,000 - 40,000 = 460,000 - Net Sales
20,000 + 10,000 = 30,000
100,000 - 30,000 = 70,000 - Net Purchases

1.
285,000 - 85,000 = 200,000
500,000 - 250,000 = 250,000

250,000
- 200,000
50,000 - Company’s Ending Inventory

2.
175,000 + 250,000 + 85,000 = 510,000

510,000
- 50,000
460,000 - Happy Net’s Sales