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

Cannot understand, please help!

The gross profit is £16,250
Mark-up 25% on cost
Opening inventory £5,550
Purchases £74,350



Calculate the closing inventory.

"Remember to break the gross profit down to 1%; if the cost of sales is based on 100%, then the value of sales has to be 125%. Have another go."

162.5 x 100 is not the answer, so how to I calculate this? 14900 is the answer, but I cannot figure it out
Sign In or Register to comment.