Workbook Osborne question

zgniotka

Question from page 77 from Osborne workbook.

Trade receivables at the start of the year were £2500 and at the end were £3250. Bank receipts from receivables total £17850, cash sales total £2500 (net of vat). What is the sales revenue figure for the year (net of vat)?
Accordinf to anawers should be £18000 but I could not figure why... please help...

Xx

hal978

Cash sales inc. VAT = 2500 * 1.2 = 3,000
Increase in receivables = 3250 - 2500 = 750
Sales inc. VAT = 17,850 + 3,000 + 750 = 21,600
Sales = 21,600 / 1.2 = 18,000

zgniotka

Thanks for your help!