# FSTP- sample assessment 2

Registered Posts: 1
Hello
I am struggling to understand the task 2 in the sample assessment 2 available on the website , particularly the point B and C.
I would have thought the cost of goods sold would be 52,800, however the answer is 55,000, I am not sure how to relate this answer and find out how this figure has been calculated.
And how do we calculate the Inventory if we only have cost of sales and purchases ?

• Registered Posts: 218
The sales figure you are given is the revenue for the year. You are told that there is a mark up of 20% so the sales figure is both the cost of sales and the profit. Because it is a mark up the cost of sales is 100% (as opposed to Margin where the sales price is the 100% figure). So you now know that the sales of £66,000 is 100% + 20%. To find the cost of the goods, the 100%, you need to divide the sales figure by 120 (%) and then times by 100(%) - this takes away the 20% mark up. The maths is similar to finding out the net cost of goods when VAT is included only the percentage changes.