Jim Mcavoy owns a small business. He has provided you with the following information about the business for the year to 30 November 2009:

Question 13 (a) Jim McAvoy owns a small business. He has provided you with the following information about the business for the year to 30 November 2009: (i) During the year $76,846 was paid into the business bank account. This included a gift of $6,000 (ii) received from a relative, with the balance being receipts from customers. Before banking the cash Jim paid business expenses of $5,700 in cash and took cash drawings of $7,800. (iii) (iv ) Jim does not hold a balance of cash on hand. As well as payments to suppliers, payments out of the bank account included business expenses of $3,400 and drawings of $2,000. ( V ) ( vi) Jim does not receive any credit from his suppliers. Jim's current assets and liabilities were: 1 December 2008 30 November 2009 Inventory $5,250 $4,190 Trade receivables $1,676 $1,360 Cash at bank nil $566 Bank overdraft $1,240 nil Required: For the year to 30 November 2009, calculate Jim's: (i) total payments made from the bank account; (2 marks) (ii) payments received from customers; (2 marks) (iii) sales; (2 marks) (iv) purchases; (2 marks) (v) gross profit; (2 marks) (vi) net profit. (2 marks) (b) Following your calculations in (a), Jim tells you that he normally adds a mark up of 20% to calculate his selling price, but on some occasions he reduced his selling price in order to make a sale. He would like to know how much this has cost him. Required: Calculate the reduction in Jim's sale for the year to 30 November 2009 as a result of the occasional reduction in his selling price