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Forums › ACCA Forums › ACCA FA Financial Accounting Forums › mark-up
can someone solve this ques:
— X has a financial year end of 31 Dec. On 8 July 20×6,flooding destroyed some of accounting records of the company. The accounting staff were able to determine from the undamaged records that, from 31 Dec 20×5 until 8 July 20×6 :
(1) inventories increased by $ 22,500
(2) sales revenues were $ 276,500
(3) the profit mark-up on goods sold was a uniform 25 %.
What were the purchases for the period from 31 Dec 20×5 to 8 July 20×6 ?
£243,700
Be aware, I’m not 100% sure.
Inventories increased by 22,500, so we must have purchased this amount.
Sales revenue = 276,500
Markup of 25%
Cost = 221200 *
Inventory + Sales at cost = 243,700
*
276500 / 1.25 = 221,200
(If 125% = 276500, then 100% = 221,200)