During the year to 31 March 2013, a firm earns £50,000 sales revenue. During the year it spent £24,000 purchasing goods for resale. Inventory as at 1 April 2012 was valued at £8,500 and by the end of the year this had risen to £9,900.
|
£ |
£ |
|
|
Sales |
50,000 |
|
|
Less Cost of goods sold: |
||
|
Opening inventory |
8,500 |
|
|
Purchases |
24,000 |
|
|
32,500 |
||
|
Less Closing inventory |
9,900 |
22,600 |
|
Gross profit |
27,400 |