A Accounting

Sales for the year (video below)

The following information is available for Sok, a sole trader who does not keep full accounting records:

$
Inventory 1 July 20X6 34,650
30 June 20X7 37,275
Purchases made for year ended 30 June 20X7 179,025

Sok makes a standard gross profit of 25 percent on sales.

Based on these figures, what is Sok’s sales figure for the year ended 30 June 20X7?

Answer

$
Opening inventory 34,650
Purchases 179,025
Closing inventory (37,275)
Cost of sales 176,400

Margin = (sale –cost)/sale = 25%

Sales = 176,400  x 100/75 = $235,200


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