Inoc, Laury Jane L.

AFAR Review 1-4PM

INSTALLMENT SALES

PROBLEM 1
30,000 SP 85,000
SP 25,000 O.All. -10,000
RC -3,000 Adj. SP 75,000
Normal GP -2,000 20,000 Cost -60,000
Overallowance 10,000 GP 15,000
GPR 20%

1) Merchandise Inventory - Traded in 20,000

Over Allowance on Trade-in 10,000
Installment Contracts Receivable 50,000
Cash 5,000
Installment Sales 85,000

Cost of Installment Sales 60,000

Merchandise Inventory 60,000

2) Cash 5,000
MI 20,000
DP (5k*7mos.) 35,000
60,000
GPR x20%
RGP, 2017 ₱ 12,000.00

PROBLEM 2
1) Beg 90,920 IS 425,000 IAR, beg 120,000 425,000
Purchases 555,000 COS -245,920 IAR,end -15,000 -200,000
Repossessions 3,000 GP 179,080 Repossession -7,200
TGAS 648,920 GPR 42.14% Collections 97,800 225,000
End -95,000 x45% x42.14%
COS 553,920 RGP 44,010 94,815
Reg Sales COS -308,000 [385,000*80%]
IS, COS 245,920 Total IS, RGP 138,825

Reg. Sales 385,000

2) Repossessed Merchandise 3,000 COS 308,000 77,000
DGP (7,200*45%) 3,240 Total RGP ₱ 215,825
Loss on Repossession 960
IAR 7,200
 PROBLEM 3
2014 2015 2016
22,500/50,000 96,000/240,000 190,000/500,000
45% 40% 38%
1) 2014 2015 2016
beg IAR 50,000 240,000 500,000
end IAR -5,000 -20,000 -80,000
Repo -8,000 -10,000 -5,000
Coll. 37,000 210,000 415,000
GPR 45% 40% 38%

RGP, IS 16,650 84,000 157,700 258,350

Inv Beg 30,000

Purchases 455,000
Repossessed 10,000
TGAS 495,000
end 35,000
COS 460,000
IS, COS 310,000 Sales 192,000
COS, Reg
Sales 150,000 COS -150,000 42,000
Total GP ₱ 300,350

2) 2014 2015 2016

IAR, end 5,000 20,000 80,000
GPR 45% 40% 38%
DGP 2250 8000 30400 ₱ 40,650

3) Repossessed Merchandise 10,000

DGP, 2014 [8,000*45%] 3,600
DGP, 2015 [10,000*40%] 4,000
DGP, 2016 [5,000*38%] 1,900
Loss on Repossession 3,500
IAR, 2016 5,000
IAR,2015 10,000
IAR,2014 8,000

4) GP 300,350 5) Cash 25,000

Operating Expenses -300,000 IAR, end 105,000
Loss on Repossession -3,500 A/R 40,000
Net Profit (Loss) ₱ (3,150) Inventory end 35,000
Other Assets 52,000
Total Assets 257,000
 PROBLEM 4
Sales based on Cash %
1) Cash Sales 60,000 0.156923077 [60,000/382,353]
Charge Sales (122,000/122%) 100,000 0.261538462 [100,000/382,353]
Inst. Sales (302,400/136%) 222,353 0.581538462 [222,353/382,353]
382,353

MI, beginning 35,000 (COGS*%)

Purchases 260,000 COS, Cash Sales ₱ 40,800
Freight in 2,000 COS, Charge Sales ₱ 68,000
Rep. Merchandise 10,000 COS, IS ₱ 151,200
TGAS 307,000
MI, end 47,000
COGS 260,000

IS 302,400
COS, IS 151,200
GP 151,200
GPR 50%

2) 2014 2015 2016

IAR beg, 2014 [14,800/40%] 37,000
IAR beg, 2015 [26,240/41%] 64,000
IAR beg, 2016 302,400
IAR,end 10,000 30,000 180,000
27,000 34,000 122,400
Defaults 12,000 14,000
Collections 15,000 20,000 122,400 ₱ 157,400
40% 41% 50%

3) RGP 6,000 8,200 61,200 ₱ 75,400

 FRANCHISE

PROBLEM 1
1) 0. No substantial services have been performed yet.
2) 1,800,000 x 2.17= 1,302,000
1,800,000
PV of Note -1,302,000
UII,2015 498,000
Interest Income -234,360 [1,302,000 x18%]
UII,2016 263,640

PROBLEM 2
1) 20,000 x 3.60 = 72,000
72,000
x 12%
Interest Income 8,640
Payment 20,000
Earned Principal 11,360
Continuing FF 5,000 [500,000 x 1%]
Total FF earned 16,360

PROBLEM 3
1) 21 x 30,000 = 630,000-20,000 = ₱ 610,000
2) Cash ₱ 210,000
Notes Receivable 400,000
Unearned Franchise Revenue ₱ 610,000

PROBLEM 4 2013 2014

1) Downpayment 30,000
Note (10,000*1.7355) 17,355 17,355 9,091
Initial FFF 47,355 10% 10%
cost -20,000 Int. Inc 1,736 909
GP 27,355 Pmt 10,000 10,000
GPR 57.77% Applied to Princ. 8,265 9,091
17,355 9,091
CA,end 9,091 0

Continuing FF 25,000
Applied to Principal 9,091
x 57.77% 5,252
30,252
Interest Income 909
Total Revenue, 2014 ₱ 31,161