Ginebra Corporation operates a branch in Cebu City to which it bills merchandise at an arbitary price representing a mark-up of 33 1/3% above cost. The following data from the books of the Home Office and Branch for the year ended December 31, 2021 given: HOME OFFICE BRANCH Inventories, Jan. 1 30, 000 12, 000 Purchases 245, 000 Shipments to branch 60, 000 Sales 280, 000 68, 000 Inventories, Dec. 31 35, 000 15, 000 Shipments from home office 80, 000 Expenses 36, 500 10, 200 Compute the combined net income of the home office and branch.

Ginebra Corporation operates a branch in Cebu City to which it bills merchandise at an arbitary price representing a mark-up of 33 1/3% above cost. The following data from the books of the Home Office and Branch for the year ended December 31, 2021 given: HOME OFFICE BRANCH Inventories, Jan. 1 30, 000 12, 000 Purchases 245, 000 Shipments to branch 60, 000 Sales 280, 000 68, 000 Inventories, Dec. 31 35, 000 15, 000 Shipments from home office 80, 000 Expenses 36, 500 10, 200 Compute the combined net income of the home office and branch.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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