R. Jack gives you the following information as at 31 March 2014: Jacks mark-up is 40% on

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R. Jack gives you the following information as at 31 March 2014:

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Jack’s mark-up is 40% on ‘cost of goods sold’. His average inventory during the year was £17,000. Draw up an income statement for the year ending 31 March 2014.

(a) Calculate the closing inventory as at 31 March 2014.

(b) State the total amount of profit and loss expenditure Jack must not exceed if he is to maintain a net profit on sales of 8%.

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Frank Woods Business Accounting

ISBN: 9780273759287

12th Edition

Authors: Frank Wood. Sangster, Alan

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