R Jack gives you the following information as at 31 March 2005:

Jack’s mark-up is 40% on ‘cost of goods sold’. His average stock during the year was £17,000. Draw up a trading and profit and loss account for the year ending 31 March 2005.

(a) Calculate the closing stock as at 31 March 2005.

(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%.

Transcribed Image Text:

Stock 1 April 2004 Purchases 14,000 82,000