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I’m really struggling with this question, could anyone help me with a method to solve it?
A trader who commenced business on 1 January Year 9 reports the purchases and sales revenue for the year to 31 December Year 9 as pound£?456,800 and pound£?479,500 respectively. The gross profit was? 20% of sales. What is the closing inventories? figure?
Sales ————– 479,500
Less:
Cost of Sales—- (383,600) —- ( Purchases Less Inventory)
( 456,800 – 73,200)————-
GP 20%
of Sales 95,900
========So the inventory is 73,200
Hope this helps
@ciarah
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