Page 26 - A Level Business Studies - Financial Analysis Tasks

Task 1.c
Look at the trading section of the Income Statement and calculate the Average Inventory.

Income Statement - Trading Account Average £
£ £ Inventory

Sales Revenue 780,000

Less Cost of Sales

Opening Inventory (Stock) 50,000

Add Purchases 420,000
470,000

Less Closing Inventory (Stock) 30,000 440,000

Gross Profit 340,000

Task 1.d

Look at the trading section of the Income Statement and calculate the Average Inventory.

Income Statement - Trading Account Average £

£ £ Inventory
Sales Revenue 100,000

Less Cost of Sales

Opening Inventory (Stock) 4,000
Add Purchases 45,000
49,000

Less Closing Inventory (Stock) 8,000 41,000
Gross Profit 59,000

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