Did my exam today and need help!

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
0
Comments
You'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.
Made 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.
Then 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.
Inventory 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
I won't ask anymore questions Cornishpixie.
Thank you
It'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.
HI
I need help in task2 the trade sells an item to a customer 405 including VAT calculate the original cost?
Thanks