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Supplementary objective test questions

16.2 You have been provided with the following incomplete extract from the statement
of profit or loss for a business that trades at a mark-up on cost of 25%.

$ $
Sales 87,129
Less: Cost of Sales
Opening inventory 6,137
Purchases 68,264
Closing inventory X (X)
––––––
Gross profit X
––––––

What should be the amount for closing inventory?

A $4,698

B $17,426

C $6,137

D $9,218

CHAPTER 17 – THE FINANCIAL STATEMENTS OF SINGLE
ENTITIES

17.1 The following information relates to KLM’s business for the year ended
31 December 20X7.

$
Expenses 14,200
Opening inventory 3,000
Closing inventory 1,800
Purchases 25,900
Gross profit 24,250
Inventory drawings 150

What is the sales figure for the business?

A $65,400

B $51,200

C $51,350

D $51,500

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