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A retail of designer menswear reports the followings
§ Opening inventory = £184,800
§ Purchases = £752,400
§ Sales = £858,600
§ Closing inventory = £248,200
The closing inventory includes £30,000 being the cost of 200 pairs of trousers damage in storage. If repaired at a cost of £40 a pair, the trousers may be sold for £100 a pair.
Problem 1: Calculate the gross profit for the year and the inventory value in the year-end Statement of financial position.
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