We are currently struggling to cover the operational costs of Xtremepapers, as a result we might have to shut this website down. Please donate if we have helped you and help make a difference in other students' lives!
Click here to Donate Now (View Announcement)
24 Barry’s sales for his first year of trading were $55 000. His gross profit margin was 20 %. The
closing inventory (stock) was $3200.
What were the purchases for the year?
A $41 250 B $44 000 C $44 450 D $47 200
Thank u shara nafaz..D is the answer coz
ur Sales is 55000 and the gross profit margin is 20% wen u simplify itll be 1/5 and therefore u substitute it with the equiation of Gross Profit margin and ur grosss profit wil be 11000 and den ull hav to wrk it backwards and ull get ur cost of sales as 44000 since u know ur closing stock wch is 3200. then ucan work backwards and get ur answer for purchases as 47200
For almost 10 years, the site XtremePapers has been trying very hard to serve its users.
However, we are now struggling to cover its operational costs due to unforeseen circumstances. If we helped you in any way, kindly contribute and be the part of this effort. No act of kindness, no matter how small, is ever wasted.
Click here to Donate Now