Accounting – 5.6 Incomplete records | e-Consult
5.6 Incomplete records (1 questions)
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(a) Gross Profit:
Gross Profit = Sales Revenue - Cost of Goods Sold
Gross Profit = £120,000 - £75,000 = £45,000
(b) Trade Receivables:
Trade Receivables = Sales Revenue - Cash Sales - (Closing Inventory - Opening Inventory)
Assuming all sales are credit sales and no cash sales, and using the provided information:
Trade Receivables = £120,000 - £15,000 - (£15,000 - £12,000) = £120,000 - £15,000 - £3,000 = £102,000