Le Rent 25,000 sales 850,000 return outwards 15,000 purchase 400,000 returns inwards 25,000 Insurance 45,000
COMMERCE
WAEC 2013
| Le | |
| Rent | 25,000 |
| sales | 850,000 |
| return outwards | 15,000 |
| purchase | 400,000 |
| returns inwards | 25,000 |
| Insurance | 45,000 |
| fixtures and fittings | 15,000 |
| wages and salaries | 112,000 |
| Transport | 6,000 |
From the above information calculate the:(a) turnover (b) cost of goods sold (c) gross profit (d) Rate of stock turn
Explanation
(a) Turnover = sales - Returns inwards = Le850,000 - Le25,000 = Le825,000
(b) cost of goods sold = opening stock + purchase - Return Outwards - closing stock Le Le opening stock 0 purchase 400,000 less returns outwards 15,000385,000 Less closing stock 0 cost of goods sold 385,000
(c) Gross profit = Turnover - cost of goods sold = Le 825,000 - Le 385,000 = Le 440,000
(d) Net profit = gross profit - total expenses
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