Help on Mark-Up
Sammy_Becs
Registered Posts: 5
Apologies, i realise my last post looked posted weird.
Could anyone help me with how i answer with question? Thank you in advance.
Receivables days are 52, Receivables are £3215920, these prices are on a mark-up of 25%, Selling cost is 5% of sales, Admin cost are 3.2% of sales, net assets are £1452500. There is 365 days in the year
Sales
COS
Gross Profit
Selling Cost
Admin Cost
Net Profit
Gross Profit Margin %
Net Profit Margin %
RONA %
Could anyone help me with how i answer with question? Thank you in advance.
Receivables days are 52, Receivables are £3215920, these prices are on a mark-up of 25%, Selling cost is 5% of sales, Admin cost are 3.2% of sales, net assets are £1452500. There is 365 days in the year
Sales
COS
Gross Profit
Selling Cost
Admin Cost
Net Profit
Gross Profit Margin %
Net Profit Margin %
RONA %
0
Comments
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Hi where did you get this question from . Do you know how to answer this0
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Sales
3215920x365/52=22573284
COS
Mark up(gross profit) + COS = sales
25%+75%=100%
22573284/100%x75%=16929963
GP
22573284/100%x25%=5643321
Selling cost
22573284x5%=1128664.20
Admin cost
22573284x3.2%=722345.08
Net Profit
GP - selling+admin cost=3792311.80
For the ratios you just fill in the formula with the aboveAAT Level 2. 2018 Distinction
AAT Level 3. 2018 Distinction
AAT Level 4. 2019 FSLC 100% MABU 93% MADC 82% PDSY 80%
Xero Certified Advisor0 -
Hi Sammy, could you confirm where you got this question from please as had a similar one on my decision and control exam yesterday. Thanks0
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please can someone confirm the above working is correct? as in the aat samples it shows inventory holding instead of receivables and they work out cos and sales differently?0
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I agree with the Sales figure, although I actually make it £22,573,285
COS + Markup = Sales
COS + (COS x 25%) = Sales
COS x 1.25 = Sales
COS = Sales/1.25 = 22.573.285/1.25 = £18,058,628
The rest is probably straightforward0
