R. Jack gives you the following information as at 31 March 2014:

Jack’s mark-up is 40% on ‘cost of goods sold’. His average inventory during the year was £17,000. Draw up an income statement for the year ending 31 March 2014.

(a) Calculate the closing inventory as at 31 March 2014.

(b) State the total amount of profit and loss expenditure Jack must not exceed if he is to maintain a net profit on sales of 8%.

Transcribed Image Text:

Inventory 1 April 2013 Purchases 14,000 82,000