Multiple choice

Opening stock is Rs. 22,000 Closing stock is Rs. 25,000 Purchases less returns is Rs. 1,10,000 Gross profit margin (on sales) is 20%

What will be the amount of sales?

  1. Rs. 1,41,250

  2. Rs. 1,35,600

  3. Rs. 1,33,750

  4. Rs. 1,28,400

  5. None of the above
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Cost of goods sold = Opening stock + Purchases - Closing stock = 22,000 + 1,10,000 - 25,000 = Rs. 1,07,000 Gross profit = 1/5 on Sales = 1/4 on Cost = 1/4*1,07,000 = Rs. 26,750 COGS = Rs. 1,07,000 Profit = Rs. 26,750 Thus, sales = 1,07,000 + 26,750 = Rs. 1,33,750

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