Use the following to answer the given question \( \begin{array}{c|c} \text{Purchases} & 2,000\\ \text{Opening stock} & 900\\ \text{Closing stock} & 300 \\ \...
Question 1 Report
Use the following to answer the given question
\( \begin{array}{c|c} \text{Purchases} & 2,000\\ \text{Opening stock} & 900\\ \text{Closing stock} & 300 \\ \text{Sales} & 3,850\end{array}\)
Gross profit is
\( \begin{array}{c|c} \text{Purchases} & 2,000\\ \text{Opening stock} & 900\\ \text{Closing stock} & 300 \\ \text{Sales} & 3,850\end{array}\)
Gross profit is
Answer Details
To calculate the gross profit, we need to use the formula: Gross Profit = Sales - Cost of Goods Sold (COGS).
COGS can be calculated as: COGS = Opening Stock + Purchases - Closing Stock
Substituting the values from the information given, we get:
COGS = 900 + 2,000 - 300 = 2,600
Substituting the values of Sales and COGS in the formula for Gross Profit, we get:
Gross Profit = 3,850 - 2,600 = N1,250
Therefore, the gross profit is N1,250.
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