A business sells goods at a constant margin of 30%. Sales in the period amounted to K800,000. Opening inventory was valued at K50,000 and closing inventory was K120,000. How much were the purchases?

At 31 December 2020, Moyos trial balance included the following items:

K

Inventory at 1 January 2020 23,856

Trade receivables 55,742

Trade payables 32,165

Bank overdraft 5,855

Loan due for repayment in 2021 15,000

What was the value of Moyos net current assets at 31 December 2020?

a.

K8,577

b.

K26,578

c.

K2,722

d.

K17,722