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

Preparation of financial statements — practice question

The statement of profit or loss for a sole trader provides the following details. Opening inventory: $5000 Operating expenses: $3000 Profit for the year: $5400 Closing inventory is $10\%$ lower than opening inventory. All goods sold are marked up by $50\%$. Calculate the purchases for the year.

  • A$10300
  • B$15700
  • C$16300
  • D$17300

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