Question

Ashok provided the following information for the year ended 31 march 2012

Revenue (sales) $120,000
inventory (opening) 1 April 2011 $ 22,500
inventory (ending) 31 March 2012 $ 26,500
Gross profit/sales 20%
Net profit/sales 8%

Hint; you should remember all steps of income statement to attempt this question
Required
(a) Calculate for the year ended 31 March 2012:
(1) Cost of goods sold
(2) Purchases
(3) Expenses

(b) Prepare income statement

Answer 1

Answer:

a)calculate for the year ended 31 March 2012

1)cost of goods sold