Trade payables of Brixton Corner were 248,450 on 30 September 2012 and 195,900 a year prior to

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Trade payables of Brixton Corner were £248,450 on 30 September 2012 and £195,900 a year prior to that date. Payment to suppliers in the year to 30 September 2012 was £794,700. The cost of inventory on 1 October 2011 was £98,400 and that a year later was £112,250. Identify the sales revenue in the year, in each of the following independent scenarios:

(a) Sales prices were so fixed to yield a gross profit ratio of 10%.

(b) Sale were always made at cost plus 20%.

(c) Sales were made at cost plus a third.

(d) Sales were usually made at cost plus 20%; but sales invoiced at £194,400 during summer were subject to a special discount of 10%.

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Financial Accounting An Introduction

ISBN: 9780273737650

2nd Edition

Authors: Mr Barry Elliott, Mr Augustine Benedict

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