Help on MarkUp
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 markup 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 markup 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

Hi where did you get this question from . Do you know how to answer this0

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

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

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