A Business Commenced with a Bank Balance of £6,500; It

Multiple Choice

A business commenced with a bank balance of £6,500; it subsequently purchased goods by cheque for £20,000; gross profit mark-up was 120%; half the goods were sold for cash, less cash discount of 5%; all takings were banked.
The resulting net profit is:

A) £1,400
B) £7,400
C) £10,900
D) £12,000
E) * £20,000 x 120% = £24,000 Gross margin