The following information relates to the business of J. Bedford for the year ended 31 December 2018.

Sales 169 000

Sales returns 6 500

Stock at 1 January 2018 9 500

Gross Profit is at the rate of 40% on sales turnover.

Net Profit is at the rate of 25% on sales turnover.

Rate of stock turn (rapidity of turnover) is 10

Required: Calculate the following, showing your workings next to your answer:

(a) The year’s sales turnover (2 marks)

(b) The gross profit (2 marks)

Answer rating: 100% (QA)

a The years sales tur... View the full answer