Home For AAT student members AQ 2016 Advanced Diploma in Accounting Final Accounts Preparation

Lifelong Learning Zone e-learning

Hello all!

I'm working through the exercises on the lifelong learning zone today and found some questions which confused me a bit. It's entirely possible I was just being stupid, so have a look and let me know whether I'm being thick!



Comments

  • Pian32Pian32 MAAT Posts: 390
    So the second question gives you the answer. I'm assuming it's either a state the obvious or misprint.

    The first question tells you the profit margin and the cost of sales and you want sales: (If it was mark up then it'd be CoS*(1+markup))

    Profit Margin= ((Sales - Cost of sales) / Sales)*100

    or recognize that if the profit margin is 45% the remaining 55% has to be the cost of sales

    0.55 S = CoS

    S = 27,500/0.55

    S = £50,000
    AAT Level 4, MAAT
    ACCA in progress
    F4- Passed Aug 2020
    F5- Passed Dec 2020
    F6- Passed Sep 2020
    F7- Planned June 2021
    F8
    F9 - Planned June 2021
  • livintivlivintiv Registered Posts: 58
    Right, thanks! I battled through it in the end (not without getting it wrong first, always the best way), but I kept reading these words and thinking that it just didn't make sense. Ah well, onwards and upwards, as they say B)
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