Thuto Computers (Pty) Ltd has a store at the local shopping complex. Thuto Computers maintains a consistent gross profit percentage on turnover. The following information was taken from the trail balance for the reporting period ended 31 December 20.8: Cash sales 2 400 000 Credit sales 2 964 000 Cash purchases 1 900 000 Credit purchases 2 230 000 Inventories (1 January 20.8) 800 000 Inventories (31 December 20.8) 750 000 Returns (in) 164 000 Returns (out) 200 000 Sales expenses 150 000 Freight (in) 180 000 Freight (out) 160 000

Sales 5,200,000.00 Cash sales 2,400,000.00 Credit Sales 2,964,000.00 returns In (164,000.00) purchases 3,930,000.00 Cash Purchases 1,900,000.00 Credit purchases 2,230,000.00 Returns out (200,000.00) Cost of sales 4,160,000.00 Opening inventory 800,000.00 purchases 3,930,000.00 other costs (freight in) 180,000.00 closing inventory (750,000.00) Gross profit sales - COS 1,040,000.00 Gross profit percentage 20% gross profit / sales *100 1,040,000/5,200,000*100

Is the above correct