The following are the summarised financial statements of London Ltd for the past two years. Statement of Financial Performance (Income Statement) for the year ended 30 November Year 7 Year 8 000 000 000 000 4,940 6,850 Revenue Cost of sales Opening inventories 630 930 Purchases 3,320 4870 3,950 5,800 Closing inventories (930) (3.020) (1.250) (4.550) Gross profit 1,920 2,300 Expenses (1,460) (1,850) Operating profit 460 450