# Did my exam today and need help!

kellypreston
Posts:

**19**AAT Student
I got completely thrown off a question when I needed to calculate sales from the following information:

Inventory holding period

Inventory

Gross profit margin

Net assets

Can someone please explain/provide a formula I would use to calculate sales based on this?I know you can calculate cost of sales from inventory and inventory holding period but then I got completely lost.

Can someone also tell me if AAT give you follow through marks? Because I made up a figure for sales so I could answer the other questions

Inventory holding period

Inventory

Gross profit margin

Net assets

Can someone please explain/provide a formula I would use to calculate sales based on this?I know you can calculate cost of sales from inventory and inventory holding period but then I got completely lost.

Can someone also tell me if AAT give you follow through marks? Because I made up a figure for sales so I could answer the other questions

## Comments

99RegisteredYou've got Inventory Holding Period = Inventory/C of Sales x 365. Once you've got Cost of Sales, you can work your way up to Sales.

19AAT Student454RegisteredMade up example:

Inventory Holding: 20 Days

Closing Inventory: £ 10,000

Gross Profit Margin: 20%

First work out missing pruchases figure: £ 10,000/20 Days * 365 Days = £ 182,500

Then Add Gross Margin to arrive at Sales £ 182,500 / 0.8 = £ 228,125

Hope this helps.

32RegisteredThen if you know the gross profit margin is, for example, 20% you can find sales by multiplying COS by what you want by what you've got ie 100/80. This will give you a sales figure.

With regards to the follow through marks, I have no idea sorry. I should imagine if it is a human marked part of the exam that there would be, but can't give you any guarantee.

19AAT Student99Registered8Registered31Registered5AAT Student, AATQBInventory holding period is 45 days, inventory vaule £225000, gross profit margin 25%, cost of sales 2%, cost admin 3.5%, net asset £18736.

This was the exam question any suggestions how it should have been answered? It required the following

Sales

Cost of sales

Gross profit

Cost admin

Net profit

Thanks

107Registered, MAAT, AATQB, AAT Licensed Accountant5AAT Student, AATQBI won't ask anymore questions Cornishpixie.

Thank you

107Registered, MAAT, AATQB, AAT Licensed AccountantIt's just in your post above, you said "This was the exam question any suggestions how it should have been answered?" which indicated that this was the actual question - which is not allowed.

Which practice assessment question did these figures come from? If you post that question, then people will be able to help you.