Razor Trading applies a mark up of 40%. At the start and end of the year, inventory was valued at £25,000 and £22,000 respectively. During the year cash purchases were £15,000 and credit purchases of £90,000. What was the value of sales for the year? a) £151,200 b) £142,800 c) £180,000 d) £170,000 The directors of Repro Ltd are anxious to improve the profit to be reported for the accounting period just ended. Which of the following would improve the profit reported? a) Increasing the rate of provision for doubtful debts from 10% to 12% of all balances over 60 days old. b) Creating a provision for possible warranty claims against the company. c) Changing from a reducing balance to a straight line basis for computing depreciation on new non-current assets. d) Writing down the value of closing inventory on the basis of damage to the stock
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Razor Trading applies a mark up of 40%. At the start and end of the year, inventory was valued at £25,000 and £22,000 respectively. During the year cash purchases were £15,000 and credit purchases of £90,000. What was the value of sales for the year?
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a) £151,200
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b) £142,800
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c) £180,000
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d) £170,000
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The directors of Repro Ltd are anxious to improve the profit to be reported for the accounting period just ended. Which of the following would improve the profit reported?
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a) Increasing the rate of provision for doubtful debts from 10% to 12% of all balances over 60 days old.
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b) Creating a provision for possible warranty claims against the company.
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c) Changing from a reducing balance to a straight line basis for computing
depreciation on new non-current assets. -
d) Writing down the value of closing inventory on the basis of damage to the stock.
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