Use the following information to answer the given question \(\begin{array}{c|c} & \text{1/1/86} & \text{31/12/86} \\ & N & N \\ \hline creditors & 5,000 & 8...

To find out the sales for the year, we need to use the information given in the table and some basic accounting principles. First, let's calculate the cost of goods sold (COGS). COGS is the cost of the goods that were sold during the year. It is calculated using the following formula: COGS = Opening stock + Purchases - Closing stock In this case, we are given the opening and closing stock and we need to find out the purchases. We can calculate purchases as follows: Purchases = Closing stock - COGS + Opening stock We are also given the mark-up percentage, which is the percentage added to the cost of the goods to arrive at the selling price. In this case, the mark-up is 25%. Now, let's apply these formulas to the information given in the table: COGS = 1,200 + Purchases - 1,100 COGS = Purchases + 100 Purchases = 8,000 - COGS + 5,000 Purchases = 13,000 - COGS Selling price = Cost + Mark-up Selling price = Cost + 0.25(Cost) Selling price = 1.25(Cost) We know that the cash paid to creditors was N7,000, which means that the remaining N6,000 was used to pay for purchases. Therefore, we can write: Purchases = Cash paid to creditors + Accounts payable 13,000 - COGS = 7,000 + 6,000 COGS = N6,000 Now we can use the formula for selling price to calculate the sales: Sales = COGS / (1 - Mark-up) Sales = 6,000 / (1 - 0.25) Sales = N8,000 Finally, we need to add the mark-up to the cost of goods sold to arrive at the sales: Sales = COGS + Mark-up Sales = 6,000 + 0.25(6,000) Sales = N7,500 Therefore, the sales for the year amounted to N7,500. None of the answer options match this answer exactly, but N12,625 is the closest option. However, we cannot choose an option that is not an exact match.