The following trading account for the year ended 31 December 19X8 is given to you by H Rayner:

Rayner says that normally he adds 25% to the cost of goods to fix the sales price. However, this year saw some arithmetical errors in these calculations.
Calculate what his sales would have been if he had not made any errors.
Given that his expenses remain constant at 7% of his sales, calculate his net profit for the year 19X8.
Work out the rate of stockturn for 19X8.
He thinks that next year he can increase his mark-up to 274%, selling goods which will cost him £140,000. If he does not make any more errors in calculating selling prices, you are to calculate the expected gross and net profits for 19X9.

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3 Sales 150,000 Less Cost of goods sold: Opening stock 20,100 Add Purchases 129,900 150,000 Less Closing stock 28,500 121,500 Gross profit 28,500