Cash 100,000

A/R 350,000
Installment AR 450,000
Inventories 300,000
PPE 800,000
A/P 300,000
N/P 400,000
Deferred Gross Profit 250,000
Ordinary Share 500,000
Returned Earnings 200,000
Dividends 100,000
Sales 1,200,000
Installment Sales 500,000
Purchases 1,000,000
Operating Expenses 400,000

Foremost Company sells both on regular sales and on a 1-year installment basis. It bills regular sales at a
50% above cost on regular sales. There has no change in billing rates since last year. Ending inventory
counted was P200,000.

10. Realized Gross Profit on regular sales

a. 800,000 b. 600,000 c. 400,000 d. 360,000
11. Realized Gross Profit on Installment sales
a. 20,000 b. 30,000 c. 40,000 d. 50,000
12. Total Collections on installment basis
a. 175,000 b. 350,000 c. 400,000 d. 450,000
13. 2017 profit
a. 170,000 b. 150,000 c. 100,000 d. 70,000