Use the information below to answer questions 13 and 14 | | # | | Sales | 50,000.00 | | Debtors | 10,000.00 | | Cash in hand | 5,000.00 | | Opening stock | 30,000.00 | | Creditors | 8,000.00 | | Purchases | 16,000.00 | | Overdraft | 12,000.00 | | Closing stock | 10,000.00 |
A. #35,000.00 B. #20,000.00 C. #15,000.00 D. #14,000.00  Correct Answer: DExplanationGross profit = Sales - Cost of goods sold
Note that cost of goods sold = Opening stock + purchase - closing stock
= 30,000 + 16,000 - 10,000
= 36,000
GP = 50,000 - 36,000
= 14,000 |
