The following information is available for the years 2010, 2011 and 2012:

The inventory valuations used above at the end of 2010 and at the end of 2011 were inaccurate. The inventory at 31 December 2010 had been under-valued by £1,000, whilst that at 31 December 2011 had been over-valued by £3,000. Required:

(a) Give the corrected figures of gross profit for each of the years affected by the errors in inventory valuation.

(b) Using the figures in the revised trading accounts, calculate for each year: (i) the percentage of gross profit to sales, and (ii) the rate of turnover of inventory.

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Opening inventory Purchases Less Closing inventory Cost of sales Sales Gross profit 2010 10,000 70,000 80,000 (20,000) 60,000 90,000 30,000 2011 20,000 86,000 106,000 (28,000) 78,000 125,000 47,000 2012 28,000 77,000 105,000 (23,000) 82,000 120,000 38,000