K K K

Sales Revenue 75,000

Less COGS

Opening Stock 15,000

Purchases 60,000
Freight In 3,000 63,000
Goods available for Sale 78,000
Closing Stock - 18,000
COGS 70,000
Gross Profit 5,000
Less Operating Expenses
Sales Staff Salaries 2,000
Net Profit 3,000

Question 1 Question 2 Question 3

COGS = K70000 Gross Profit/Net Sale x 100 Gross Profit /Cost of Goods Sold
5000/75000 x 100 5000/70000 = K0.0714
6.67%

Questin 4 Question 5
Net Profit = K3000 Net profit/Net sales = Net profit Ratio
80000/320000
0.25

Question 6
GOGS/Average Inventory
238000/(43000 + 53000)
238000/96000 = 2.48
Question 7 (A)
In Out Balance
Date Ref QTY Cost Value QTY Cost Value QTY Cost Value
Opening
1/01/2013 Stock 2,000 5 10,000
7/01/2013 Purchase 7,000 6 42,000 7,000 6 42,000
27/01/2013 Purchase 5,000 7 35,000 5,000 7 35,000
31/01/2013 Sales 2,000 5 10,000 2,000 5 10,000
31/01/2013 Sales 7,000 6 42,000 7,000 6 42,000
31/01/2013 Sales 1,000 7 7,000 1,000 7 7,000
4,000 7 28,000

B). COGS = 10 000 + 42 000 + 7 000 C). 20 000 + 70 000 + 10 000

K59 000 K100 000

Question 8
Required
A) Cash @ Bank Account Balance
K15 300

B)
Rickys Bank Reconcialiation Statement
as at 31 January 2013
K K
Credit balance as per bank statement 15 300

Add Unpresented Cheques 1,400

Direct Deposits 3,000 4,400
19,700
Less Unpresented Cheques 2,000
Bank Charges 100 2,100
Credit balance as per bank statement 17,600