Exam 3: The Statement of Profit or Loss

Mahmood's revenue for 20X5 was £313 450, cost of sales was £255 500 and expenses were £72 500.His drawings for the year were £24 400 and opening capital at the beginning of the 20X5 financial year was £82 460. What was Mahmood's closing capital at the end of the 20X5 financial year (to the nearest £)?

Shobna sells sewing machines at a retail price of £520, which gives her a gross profit margin of 25%.During her trading year ended 31 March 20X9, she sold 420 machines, and moved to larger premises so that she could carry more inventory.At 31 March 20X9 her closing inventory (50 machines) is 100% higher than her opening inventory. Assuming no change in the cost and selling price structure, what was the value of Shobna's purchases during the year ended 31 March 20X9?

Roger's business has the following revenue and purchases figures in 20X1 and 20X2: His opening inventory at 1 September 20X0 was £15 800.Gross profit margin for the year ended 31 August 20X1 was 28.2%.In the year ended 31 August 20X2 it was 29.0%. What was Roger's closing inventory at 31 August 20X2 (to the nearest £)?

Margaret's business has the following revenue and purchases figures in 20X8 and 20X9: Her closing inventory at 30 November 20X9 was £13 650 and gross profit margin in both years is 34%. What was Margaret's opening inventory at 1 December 20X7 (to the nearest £)?

Which of the following best describes a statement of profit or loss?

David's revenue for 20X4 was £118 800 and his net profit percentage was 16.5%.His opening capital balance was £15 557 and his drawings for the year were £17 900.He did not introduce any further capital during 20X4.What was David's closing capital balance at the end of the 20X4 financial year?

Tiggy makes revenue of £140 520 in the 20X6 financial year.Cost of sales was £86 950 and her net profit margin was 17.1%. What was the total of Tiggy's expenses for the 20X6 financial year (to the nearest £)?

During the year ended 28 February 20X4, Biddy sells 14 072 units of inventory at £31.25 each.Her gross profit on each unit of inventory is £9.25.She purchased inventory to the value of £335 940 between 1 March 20X3 and 28 February 20X4.At 28 February 20X4 she has 2040 units in inventory.There have been no changes to cost or selling prices during the two-year period to 28 February 20X4. What was the value of Biddy's opening inventory at 1 March 20X3?

Bathsheba's net profit margin in 20X4 was 6.3% and her gross profit margin was 28.6%.Closing inventory was 108% of opening inventory and her purchases totalled £155 400.Opening inventory was £13 200. What was Bathsheba's revenue figure for 20X4 (to the nearest £)?

Cliff buys mirrors from a wholesaler and sells them from his market stall.Each mirror costs Cliff £15.50 and retails at £23.00.During the trading year ended 30 September 20X6 Cliff purchased 360 mirrors.His opening inventory was 24 mirrors and his closing inventory is valued at £496. Assuming that there has been no change in the cost and selling price structure, what is the value of Cliff's revenue for the year ended 30 September 20X6?

Cy is in business as a sole trader, selling a range of corkscrews and bottle openers.In the month of March 20X4 revenue is £4250.Cy's closing inventory of £2250 is £380 higher than his opening inventory.Purchases during the month were £2950.What is Cy's gross profit for March 20X4?

Diane is in business selling coffee mugs.Each mug sells for £4.50 and in the month of January 20X1 she sells 600 mugs.The cost to her of one mug is £2.75, and she had 320 in inventory on 1 January 20X1.On 31 January 20X1 her inventory level is 342. What is Diane's gross profit for the month of January 20X1?

Baljit's sole trader business has recorded revenue in the year ended 31 December 20X6 of £421 000.Opening inventory was £51 400 and Baljit purchased goods for resale during the year at a value of £332 470.Baljit's gross profit margin was constant throughout the year at 27.2%. What was the value of Baljit's closing inventory at 31 December 20X6?

Emilia's revenue for the financial year 20X3 is £198 000.This revenue figure is 10% higher than the figure for the 20X2 financial year.The gross profit margin has remained the same for both years: 30%. What was Emilia's gross profit in 20X2?

Brunnhilde sells 420 600 units of inventory during her trading year ended 31 December 20X8.The selling price of each unit is £5.50 and she makes a gross profit of 20%.The selling and cost price structure has remained unchanged for several years.Brunnhilde purchases a total of 410 000 units during the year, and a stocktake on 31 December 20X8 shows that she has 52 770 units in the warehouse. How many units of inventory were in the warehouse on 1 January 20X8?

Tallulah's business had total revenue of £393 450 in the financial year ended 31 October 20X4.Her gross profit margin was 45.6% and her expenses were £120 500. What was Tallulah's net profit margin, to one decimal place, for the year ended 31 October 20X4?

Which one of the following statements is correct? A sole trader's drawings appear in his or her accounts as:

Pierre, a sole trader, is in business selling ovens to restaurants and hotels.During the financial year ended 31 December 20X4, his gross profit margin was 32%, an improvement over the previous year's margin of 30.5%.Pierre has come up with two possible reasons for the improvement: A.'I put my prices up by 5% when one of my main competitors went out of business in July, and fortunately, the price increase doesn't seem to have had an adverse effect on trading volumes'. B. 'The local authority's been charging me far too much in business rates ever since I moved to these premises.At the start of the year I applied for a rate rebate, and in April I received a really substantial refund'. Which of these reasons has contributed to the improvement in gross profit margin?

Del is a sole trader selling toys from a chain of 18 retail shops.Shortly after Christmas, he is comparing his business's performance in December with that of the leading toy retailers.Recently published statistics show that the leading retailers made 26.2% gross profit and 9.8% net profit in the month. Del's opening inventory was £4 200 200 and closing inventory was £1 230 400.He purchased inventory valued at £17 206 300 during December and his revenue was £26 500 000. On the basis of his actual cost of sales in December, what would Del's revenue have been, to the nearest £, if he had achieved the same gross profit margin as that of the leading toy retailers?

Graeme is a sole trader selling electrical equipment from a chain of 10 retail shops.Shortly after Christmas, he compares his business's performance in December with that of the leading high street retailers.Recently published statistics show that the leading retailers made 26.2% gross profit and 9.8% net profit in the month. Graeme's opening inventory was £4 200 200 and closing inventory was £1 230 400.He purchased inventory valued at £17 206 300 during December and his revenue was £26 500 000.Expenses for the month were £4 018 400. Which of the following statements is correct?