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

Flyby
Registered Posts: 13 Regular contributor ⭐ 😼 ⭐
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:
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:
0
Comments
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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=£260,0000 -
even easier way 200000*130/100=2600000
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easiest way 200000*1.3=260000AAT
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