Test your understanding 1 Peter buys and sells washing machines. He has been trading for many years. On 1 January 20X7, his opening inventory is 30 washing machines which cost $9,500. He purchased 65 machines in the year amounting to $150,000 and on 31 December 20x7 he has 25 washing machines left in inventory with a cost of $7,500. Peter has sold 70 machines with a sales value of $215,000 in the year. Calculate the gross profit for the year ended 31 December 20x7