A company achieves a gross profit margin of 20% on sales.
Opening stock is £5,000
Creditors at the start of the period were £4,000
Sales in the period amounted to £50,000
Year end creditors were £6,000
Business paid creditors £37,500 in the period.
At the period end all stock had been stolen.
What was the stolen stocks value.
(And yes, I've counted all of the zeros on each figure three times just to make sure that the questions correct this time)
__________________
Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
I'm going to have to start making them more difficult for you aren't I Ruth!
Yes, another gold star.
For anyone else who wants the answer :
Calculate purchases in the period : 6k + 37.5k - 4k = £39,500
Calculate profit : 50k * 20% = £10,000
Therefore, cost of goods sold was £40,000 (50k - 10k)
Opening stock was £5,000 + purchases of £39,500 = £44,500 Minus cost of goods sold which was £40,000 leaves a stock loss of £4,500
Well done Ruth... Does anyone want anther one?
__________________
Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
