Accounting MCQ

[Mohammad Hasham]

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

 

[Sarah Paul]

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

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

 

[Mohammad Hasham]

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

Thank u shara nafaz..