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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