Purchases 98,600

Stock – Beginning 12,400

Stock – ending 18,200

Expenses 11,700

Gross Profit margin 20%

Calculate Sales, Gross profit, Net profit and net profit margin (8 Marks).

2.2

Sales 268,650

Stock – Open 55,300

Stock – Close 23,900

Interest on long-term loan 8,400

Salary owner 22,600

Drawings 6,200

Provision for bad debts 3,800

Stationery on hand 2,400

Stationery expense 800

Electricity Expense 1,200

Gross Profit Mark-up 25%

Calculate Purchases, cost of sales, gross profit, net profit and net profit margin (10 Marks)

2.3

Average inventory 36,800

Opening inventory 22,400

Expenses 8,300

Inventory turnover 3 times

Gross profit mark-up 25%

Calculate sales, purchases, closing stock, cost of sales, gross profit, net profit and net profit margin.