CHAPTER 7

• 71.4%

• 47.3%

• 40.0%

• 28.6%

• £316,600

• £314,400

• £314,200

• £307,800

A business has opening inventory of £12,300 and closing inventory of £14,700. Purchases for the year were £68,400.

The figure for cost of sales is:

• £95,400

• £79,800

• £68,400

• £66,000

The mark-up is 35% where:

• cost of sales is £200,000 and sales are £270,000

• cost of sales is £175,500 and sales are £270,000

• cost of sales is £200,000 and gross profit is £94,500

• gross profit is £70,000 and sales are £200,000

Brooker paid £130,800 to credit suppliers during the year ended 31 December 20X5. At the beginning of the year payables totalled £11,750 and at the end they totalled £12,750. The value of closing inventory was £8,200. Cash purchases were £2,800. The cost of sales for the year was £148,000.

What was the value of opening inventory?

• £21,600

• £24,400

• £22,400

• £23,200

In the year ended 31 December 20X8 Vulcan plc, a retailer, had sales totalling £4,200,000. The mark-up was 25% of cost. Inventories at 1 January 20X8 had a cost of £600,000 and at 31 December 20X8 of £680,000.

What was the total of the company's purchases during the year ended 31 December 20X8?

• £3,280,000

• £3,360,000

• £3,440,000

• £3,830,000

• £2,600

• £1,900

• £2,800

• £2,000

• £15,936

• £22,752

• £22,514

• £21,768

• £66,000

• £58,200

• £64,000

• £64,200

• decrease profits and increase current assets by £1,250

• increase profits and decrease current assets by £1,250

• decrease profits and decrease current assets by £1,250

• increase profits and increase current assets by £1,250