Peep Stores and all its suppliers are registered VAT vendors, and VAT is calculated at 14%. The following information was extracted from the ledger of Peep Stores for the reporting period ended 28 February 2018:

Trade inventories (1 March 2017) R277,500

Purchases R820,000

Freight (in) R80,000

Freight (out) R120,000

Total sales R1 252,500

Additional information:

R

277,500 820,000 80,000 120,000 1. 1,252,500

During June 2017 goods were sold on a “sale” at a discount of 20% on selling price. The total sales figure provided above includes sales of R140 000 (excluding VAT) in respect of goods sold during the June “sale”.

Peep Stores maintains a consistent mark-up (except for the June sale).

On 12 March 2018 a fire erupted while the shop was closed for the lunch hour and almost all the inventories were destroyed.

Peep Stores is insured for R136 800 for “loss of inventories” in terms of a policy which contains an average clause.

5. The following information is available for March 2018:

Trade inventories March 01 R147,500

Purchases (VAT included) March 02 R79,800

March 17 R 153,900

March 20. R228,000

Sales (VAT included) March 05 R125,400

March 23. R182,400

6. The value of trade inventories was determined by a physical count on 31 March 2018 and amounted to R258 800. The insurance company paid the claim on 31 March 2018.

REQUIRED:

Calculate the gross profit percentage on sales for the year ended 28 February 2018.