₦ ₦ Stock 1/1 20,000 Net sales 370,000 Add purchases 250,000 Cost of goods available for sale 270,000 Less stock 31/12 40,000 Cost of goods sold 230,000 Ren...

Answer Details

To calculate the net profit, we need to use the following formula: Net Profit = Net Sales - Cost of Goods Sold - Rent Expenses Using the information given in the question, we can plug in the values: Net Profit = 370,000 - 230,000 - 35,000 Net Profit = 105,000 Therefore, the net profit is ₦105,000. Explanation: The net profit is the amount left after deducting all expenses from the revenue. In this case, we subtracted the cost of goods sold (which is the cost of the goods that were sold during the period) and rent expenses (which is the cost of renting the store or office) from the net sales (which is the total revenue earned). The result is the net profit, which represents the amount of money the business has earned after paying all expenses.