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

Preparation of financial statements — practice question

The information below relates to a company for the financial year ending 31 March. revenue $7\,200\,000 administrative expenses $320\,000 finance costs $150\,000 distribution costs $250\,000 dividend paid $60\,000 No other expenses were incurred during this period. The company applies a constant mark-up of 25% to every item sold. What was the profit from operations for the year ended 31 March?

  • A$720\,000
  • B$870\,000
  • C$1\,080\,000
  • D$1\,170\,000

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