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Forums › FIA Forums › FA2 Maintaining Financial Records Forums › incomplete records
i need some easy way to calculate incomplete records.can u assist me ??
question
during 2007 a company had gp of 90000 on sales of 250000.during 2008 its sales were increased by 25% and gp percentage decreased by 6%,and its purchases were 198750 witch were 20% more than the previous year.its inventory on 31 dec 2008 was 80000.
what was its inventory on 31 dec 2007?
a. 90000
b. 98000
c. 110000
i got no answer from the above given answers.
my answer was 88000 .is this true or not?
sir plzzz help me……
2007 GP% = 90/250 = 36%
2008 GP% = 36 – 6 = 30%
2008 sales = 250,000 x 1.25 = 312,500
2008 GP = 312,500 x 30% = 93,750
2008 CoS = 312,500 x 0.7= 218,750
CoS = OS + Purchases – CS
218,750 = OS + 198,750 – 80,000
OS = 218,750 -198,750 + 80,000 = 100,000
I don’t get answer a, b or c
thank you for the answer…..