Use the following to answer the given question \( \begin{array}{c|c} \text{Purchases} & 2,000\\ \text{Opening stock} & 900\\ \text{Closing stock} & 300 \\ \...

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

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.