Use the following to answer the given question \(\begin{array}{c|c} & N \\ \hline sales & 45,000 \\ \text{Opening stock} & 20,000 \\ \text{Closing sock} & 3...
Question 1 Report
Use the following to answer the given question
\(\begin{array}{c|c} & N \\ \hline sales & 45,000 \\ \text{Opening stock} & 20,000 \\ \text{Closing sock} & 30,000 \\ Expenses & 15,000 \\ \text{Fixed assets} & 40,000 \\ Debtors & 10,000 \\ Creditors & 5,000 \\ Purchases & 25,000 \end{array}\)
Net profit is
\(\begin{array}{c|c} & N \\ \hline sales & 45,000 \\ \text{Opening stock} & 20,000 \\ \text{Closing sock} & 30,000 \\ Expenses & 15,000 \\ \text{Fixed assets} & 40,000 \\ Debtors & 10,000 \\ Creditors & 5,000 \\ Purchases & 25,000 \end{array}\)
Net profit is
Answer Details
To calculate the net profit, we need to use the formula:
Net profit = Total sales - Cost of goods sold - Expenses
Cost of goods sold (COGS) can be calculated using the following formula:
COGS = Opening stock + Purchases - Closing stock
Plugging in the values from the table, we have:
COGS = 20,000 + 25,000 - 30,000 = 15,000
Therefore,
Net profit = 45,000 - 15,000 - 15,000 = N15,000
Therefore, the net profit is N15,000.
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