Help on Mark-Up

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

Gross Profit
Selling Cost
Admin Cost
Net Profit

Gross Profit Margin %
Net Profit Margin %


  • Resmi
    Resmi Registered Posts: 2
    Hi where did you get this question from . Do you know how to answer this
  • dumutroba
    dumutroba AAT Student, AATQB Posts: 264
    Mark up(gross profit) + COS = sales
    Selling cost
    Admin cost
    Net Profit
    GP - selling+admin cost=3792311.80

    For the ratios you just fill in the formula with the above
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  • RyanP123
    RyanP123 Registered Posts: 1
    Hi Sammy, could you confirm where you got this question from please as had a similar one on my decision and control exam yesterday. Thanks
  • sophie_612
    sophie_612 LondonRegistered Posts: 136
    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?
  • PeterC
    PeterC Registered, Tutor Posts: 236
    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 straightforward
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