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Help Required getting my head around missing figures in order to complete accounts

FlybyFlyby New MemberRegistered, Array Posts: 13
in AAT Level 3 (Level 6 in Scotland)
Hi,

I'm on Chapter 14 Osbourne books Account Prep 1 and 2. I have to say I really have to understand things in order for it to sink in, I thought I was making good headway but am struggling with my assignment with premier (assignment 2 ap2 - Michael Mckintosh), so if anybody can help me on the opening question it will be much appreciated, in the most basic of explanations please.:confused1:
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  • roy ramphulroy ramphul Feels At Home Registered Posts: 36
    Markup is always based on cost of sales.

    Margin is always based on sales.

    Excercise 14.1 we are given cost of sales is £200,000 and the markup is 30%

    Therefore we can use the markup formula to work out the gross profit.

    Gross Profit = 30% of £200,000= £60,000.

    Now we can work out the sales value by adding Gross profit to Cost Of Sales.

    Therefore Sales = £200,000+ £60,000=£260,000
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  • liveprincessliveprincess Well-Known Registered Posts: 214
    even easier way 200000*130/100=260000
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  • aaron0121aaron0121 Trusted Regular BirminghamRegistered Posts: 422
    easiest way 200000*1.3=260000
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