C White gives you the following information as at 30 June 20X7:

White’s mark-up is 50% on ‘cost of goods sold’. His average stock during the year was £12,000.
Draw up a trading and profit and loss account for the year ended 30 June 20X7.

(a) Calculate the closing stock as at 30 June 20X7.

(b) State the total amount of profit and loss expenditure White must not exceed if he is to maintain a net profit on sales of 10%.

Transcribed Image Text:

Stock 1 July 20X6 Purchases 6,000 54,000