Answer to Question #225012 in Accounting for lovisa

Question

Credit Sales     N$ 582 000

Mark-up          30%

Opening Stock    N$ 38,400

Closing Stock     N$ 18,800

Calculate the following

Gross profit                                                  

                                          

Answer 1

$Cost\ of\ goods\ sold=\frac{sales}{mark-up}\\ =\frac{582000}{1.3}=447692.31\\ Gross\ profit= cost\ of\ goods\ sold\times mark\ up\\ =447692.31\times 0.3\\ = 134307.69$