Page 27 - A Level Business Studies - Financial Analysis Tasks

Task 1.e

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

Income Statement - Trading Account Average
£ £ Inventory £
Sales Revenue 356,897

Less Cost of Sales
Opening Inventory (Stock) 23,112

Add Purchases 167,987

191,099
Less Closing Inventory (Stock) 27,598 163,501
Gross Profit 193,396

Task 1.f

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

Income Statement - Trading Account Average £

£ £ Inventory
Sales Revenue 873,456

Less Cost of Sales
Opening Inventory (Stock) 54,699

Add Purchases 308,345
363,044

Less Closing Inventory (Stock) 66,821 296,223
Gross Profit 577,233

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