Reference no: EM132624327
Question -
1. Gordon business:
Revenue 90000
Opening inventory 8000
Closing inventory 2000
Mark up 20%
He took 7000 goods for own use
What is his purchases (answer is 61000) I do not seem to get to that amount. Struggling with mark up and Margin differences and calculation thereof.
2. Sandra Business information:
Revenue 189000
Purchases 125000
Gross profit as percentage of cost of sales 25%
What is gross profit (answer 37800 but do not get to that)
3. Khalid does not maintain full set of accounting records. His financial year ends 30 Sept and all purchases and sales are made on credit terms
On 1 Oct 2017
Inventory 3100
Trade receivables 4620
During the year ended 30 Sep 2018
Cheques received from trade receivables 47970
Discount allowed 1230
Bad debt written off 115
Total purchases 39200
On 30 Sept 2018
Trade receivables 3305
After warehouse was closed on 30 Sep a fire broke out and quantity of inventory destroyed. Undamaged inventory was valued at 1500
Profit mark-up 25%
What is sales for year end 30 Sept 2018?
What is income statement (trading account section) to show value of inventory destroyed for year end 30 Sep 2018?
What is rate of inventory turnover. Include total inventory before fire broke out on 30 Sep 2018?