While examining the December 31, 2022 financial statements of Bukidnon Company, a new client, you discover the following: 1. Inventory at January 1, 2022, had been overstated by P 30,000. 2. Inventory...


While examining the December 31, 2022 financial statements of Bukidnon Company, a new client, you discover the following:


1. Inventory at January 1, 2022, had been overstated by P 30,000.


2. Inventory at December 31, 2022 was understated by P 50,000.


3. A three year insurance policy had been purchased on January 2, 2021, for P 15,000. The entire amount was charged as an expense in 2021.


4. During 2022, Bukidnon received a P 10,000 cash advance from a customer for merchandise to be manufactured and shipped during 2023. The 10,000 was credited to Sales Revenue. Bukidnon's gross profit on sales is 50%.


5. Net income reported on the 2022 income statement (before reflecting any adjustments for the above items) is P 215,000.


QUESTION: What is the proper net income for 2022?



Jun 10, 2022
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