Accounting 9706 · AS & A Level · Preparation of financial statements

Preparation of financial statements — practice question

A business recorded a gross profit margin of $25\%$. For that year, the information given is: Revenue from sales: $200\,000$ Inventory at the start: $10\,000$ Inventory at the end: $5000$ What amount were the purchases for the year?

  • A$135\,000$
  • B$145\,000$
  • C$155\,000$
  • D$165\,000$

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