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CONCEPTS IN FED.TAX.,2020-W/ACCESS

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter3: Income Sources

Section: Chapter Questions

Problem 79P

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Prisha has not kept accurate accounting records during the financial year. She
had an opening inventory of $6,700 and purchased goods costing $84,000
during the year. At the year-end, she had $5,400 left in inventory. All sales are
made at a mark up on the cost of 20%.
What is Prisha's gross profit for the year?
a) $13,750
b) $17,060
c) $16,540
d) $20,675

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Prisha has not kept accurate accounting records during the financial year. She had opening inventory of $6,700 and purchased goods costing $84,000 during the year. At the year-end she had $5,400 left in inventory. All sales were made at a mark-up on cost of 20%. What is Prisha’s gross profit for the year?
July, a sole trader, has not kept accurate accounting records during the financial year. She had opening inventory of $6,700 and purchased goods costing $84,000 during the year. At the year end she had $5,400 left in inventory. All sales are made at mark up on cost of 20%. What is July's gross profit for the year?
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