Answered step by step
Verified Expert Solution
Question
1 Approved Answer
A business purchase goods on credit for $10000, half the goods purchased were sold for cash at a markup of 120%. sales commission of 5%
A business purchase goods on credit for $10000, half the goods purchased were sold for cash at a markup of 120%. sales commission of 5% was payable on this transaction. all takings were banked.
what was the net profit arising as a result of entering into these transactions?
A $5700
B $5450
C $4750
D $5200
i know the answer is B but i dont know how and how the cash = 11000 and sale 11000 they are saying purchases are of 10000 so if we dont know op inv and cl inv how we gonna find it out plz elaborate more on this thankyou
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started