5. Mr. Qis a practicing Doctor of Medicine. During the month of March 2019, he received Professional Fees amounting to P 1,000,000 and total expenses of P250,000. The net income of Mr. Qis P750,000. 6. Profit is the money received from the customer in exchange of products given to customer. 7. The gross profit rate of the entrepreneurial venture is computed by dividing the cost of goods sold by net sales. 8. The gross profit rate provides information on the cost ratio of the business. 9. One of the objectives in evaluating the gross profit rate of the business is to determine whether the amount of the gross profit is sufficient to cover the operating expenses. 10. The operating profit margin rate indicates information on the percentage of operating expenses to net sales. 11 The government is not interested in financial statements since it is not a party to any of the transactions of the business. 12. The net profit margin rate presents the general perspective of the operating performance of the business. 13. The amount of income per peso investment can be determined by computing the net profit margin rate. 14. In a normal situation, it is favorable for the business to have high inventory 15. Preparation and presentation of the financial statements of the entity is the primary responsibility of an accountant.​