Bruno has been running a very successful online toy shop specialising in vintage miniature cars from all over the world, which he sources from collectors and auctions. As his business is not very large and he does not want to install complex accounting systems he is using the periodic method to account for his inventory. During the current year the business had sales of R125 000, and at year-end when Bruno performed an inventory count he still had inventory with a cost of R12 000 on hand. The business had an opening balance of R20 000 of inventory on hand at the beginning of the year. (Ignore all VAT implications.) Purchases of inventory for the year can be summarised as follows: Month January February March April May June July August September October November December TOTAL Unit cost R540 R650 R100 R3 000 R240 R500 R8 000 R25 R300 R270 R640 R280 Quantity 12 23 40 1 8 10 2 200 12 7 10 5 Total Cost R 6 480 R 14 950 R 4000 R 3000 R 1920 R 5000 R 16 000 R 5000 R 3 600 R 1 890 R 6400 R 1400 R 69 640 1.1 What is Cost of sales for the year? (Max. 4 lines) (3 marks) Start writing here: (Beginning inventary & purchases) - End - Cost of good 1.2 What is Gross profit for the year? (Max. 3 lines) (2 marks) Start writing here: 1.3 What is the Gross margin for the year? (Max. 4 lines) (3 marks) Start writing here: 1.4 What is the mark-up on cost of selling the inventory? (Max. 4 lines) (3 marks) Start writing here: 1.5 A collector has given Bruno a 10% discount on a collection of 15 cars. Would this increase or decrease his gross margin when selling these cars, assuming the selling price remains the same? Explain why. (Max. 2 lines) (2 marks) Start writing here: 1.6 Name two ways in which he could increase the gross margin on his business. (Max. 2 lines) (2 marks) Start writing here: 1.7 What three journal entries are required to correctly record inventory in the accounting records at year-end? (Max. 9lines) (5 marks) Start writing here