What was the companys profit for the period from February to April?

Select one:

a. A profit of 62,100

b. A profit of 108,500

c. A profit of 2,100

d. A profit of 382,500

Gareth Edwards and his brother Shaun want to form a company to set up a business to import ties and scarves and sell them in Scotland. Gareth and Shaun will each pay cash for 7,500 shares with a nominal value of 7.00 on the day the business starts. On that day the business will also borrow 40,000 from their father, to be repaid in 12 months time. Rent of 12,000 will be paid in cash on the 1st of every month for a leased shop. Also, on 1st February, a van will be purchased for 88,000, paying a 25% deposit on that date with the balance payable in equal instalments over the next 11 months. The useful life of the van is 5 years. The brothers have prepared the following budget for the first 3 months of the new business: March February 200 April 400 250 300 300 350 200 250 380 Items purchased Purchase price (a supplier who provides 10% of the goods, gives 1 month's credit; all other suppliers offer only cash terms) Items sold Selling price (60% are cash sales and 40% are credit sales, paid 1 month after sale). Accountant's fee for advice, paid in cash. Casual wages paid to part-time workers. 400 450 500 6,000 600 5,400