help

sharron123

Hi ,can any one help with a few homework questions
1/A firm had a flood destroying all stock.Opening stock £1,000
sales £10,000 purchases £8,000
mark-up 46%
I need to calculate the value of stock lost in flood?
Where do I start?

Richard

Opening stock + Purchases = Cost of stock available for sale (a)

Sales - Gross Profit = Cost of sales (b)

Therefore, a - b will give you the estimated closing stock, and as all the stock was destroyed, this will be your answer.

bevkes

Richard is correct, and i just wanted to put it in figures for you.......Are you sure that the 46% is the mark-up not the margin, because i can't really work it out if its the mark-up.:001_tt2:

sharron123

hi ,
Yes it was mark-up ,ive got the answers now and managed to work it through the answer was £215.00
thanks

sharron123

hi ,
the answer was actually £2150.00
sorry:001_smile: