1. Company’s Cost of Goods Sold amounted to Php 295,000.

Net cost of purchases

totaled Php 105,000. Beginning inventory amounted to Php 300,000. Sales
amounted to Php 600,000. Compute for the company’s Ending Inventory.

2. Gross profit of Star Selling amounted to Php 195,000. Beginning Inventory

totaled Php 300,000. Ending Inventory amounted to Php 110,000 while Net Cost
of Purchases totaled Php 105,000. Compute for Star’s Net Sales.

3. Star Selling’s beginning inventory amounted to Php280,000. Net purchases

amounted to Php90,000. Freight In totaled Php20,000. Compute for the
company’s cost of goods available for sale.

4. Star Selling’s Sales amounted to Php 600,000. Sales returns and sales discounts
amounted to Php 40,000 and Php 20,000 respectively. Purchases of the company
totaled Php 300,000 while purchase returns and purchase discounts amounted to
Php 50,000 and Php 30,000 respectively. How much is the company’s Net Sales?
Net Purchases?

5. Wonderland Marketing generated sales amounting to Php680,000. Cost of Sales

is P240,000, selling expenses for the year is Php180,000 and the general and
administrative expenses is P140,000. How much is the net income for the year?
 Cost of Sales/COGS:
Merchandise Inventory, beginning xx Inventory, beg. xx
Add: Purchases xx Add: Net Purchases xx
Less: Add: Transportation/Freight In xx
Purchase Returns and Allowances xx Goods Available for Sale xx
Purchase Discounts xx
Net Purchases xx
Add: Transportation In xx
Goods Available for Sale xx
Less: Merchandise Inventory, July 31, 2016 xx
Cost of Sales/COGS xx

Detailed Income Statement:

Sales or Gross Sales xx
Less:
Sales Discount xx
Sales Returns and Allowances xx xx
Net Sales xx
Less: COGS
Merchandise Inventory, beginning xx
Add: Purchases xx
Less:
Purchase Returns and Allowances (xx)
Purchase Discounts (xx)
Net Purchases xx
Add: Transportation In xx
Goods Available for Sale xx
Less: Inventory, beginning (xx)
Cost of Sales/COGS xx
Gross Profit/Margin xx
Less: OPEX (Operating Expenses)
*List all the expenses* xx
Operating Income xx
Add(Less): Any Gain (Losses) xx
Net Income xx