Exam 3: The Statement of Profit or Loss

Milly's business yielded a net profit margin of 10.2% in the financial year 20X5.Her expenses were £101 440 and revenue was £447 200.Purchases were £301 100 and closing inventory was £29 770.What was Milly's opening inventory at the beginning of the 20X5 financial year (to the nearest £)?

Sharon is a sole trader selling dressing gowns.Each garment retails for £16.50 and costs Sharon £9.20.In December 20X4 Sharon takes advantage of the Christmas market and sells 521 dressing gowns.At the beginning of the month she had a inventory of 86 items and she purchased a further 480 during the month. What is the value of Sharon's closing inventory at the end of December 20X4?

Diane is in business selling coffee mugs.Each mug sells for £4.50 and in the month of June 20X7 she sells 600 mugs.The cost to her of one mug is £2.75, and she had 320 in inventory on 1 June 20X7.On 30 June 20X7 her inventory level is 342. How many mugs did Diane purchase in June 20X7?

Farah's business yielded a net profit margin of 10.2% in the financial year 20X5.Her expenses were £101 440 and revenue were £447 200. What was Farah's gross profit margin for the 20X5 financial year (to one decimal place)?

Cormac is a sole trader.His revenue for 20X8 was £102 570.Cost of sales is £61 400 and expenses total £17 250.A recent business survey has found that, on average, businesses similar to Cormac's have a gross profit margin of 38.2% and a net profit margin of 24.3%. Which one of the following statements is correct?

Sharon is a sole trader selling dressing gowns.Each garment retails for £16.50 and costs Sharon £9.20.In December 20X4 Sharon takes advantage of the Christmas market and sells 521 dressing gowns.At the beginning of the month she had a inventory of 86 items and she purchased a further 480 during the month. What is Sharon's gross profit for the month of December 20X1?

Selim is a solicitor whose practice generated £385 750 of fees in the 20X6 financial year.His total expenses for the same period were £275 580.Selim expects his fee income to rise by 13% in the current 20X7 financial year.Expenses, however, are forecast to rise by only 11.7%.What is Selim's forecast net profit margin for the 20X7 financial year (to one decimal place)?

Bryn's revenue for 20X5 was £331 330, cost of sales was £227 400 and expenses were £50 551.Revenue in 20X5 was 12.5% higher than in 20X4.Gross profit margin and net profit margin in both years were the same.What were Bryn's expenses in 20X4 (to the nearest £ and working to one decimal place in calculations)?

Derek runs a business selling baby buggies.The selling price of each buggy is £320 and the cost to Derek is £243.During the year ended 31 March 20X3, Derek sells a total of 346 buggies.All of his sales were at list price except for the 39 buggies sold during Derek's sale in August, when he advertised buggies at 20% off list price. What is Derek's gross profit for the year?

Bev's revenue for 20X1 was £180 882.Cost of sales was £113 740, and expenses were £32 404.Revenue in 20X2 was 10% higher than in 20X1.Gross profit margin and net profit margin in both years were the same. What were Bev's expenses in the 20X2 financial year (to the nearest £)?