Use the information below to answer questions 13 and 14
#
Sales 50,000.00
Debtors 10,000.00
Cash in hand 5,000.00
Opening stock 30,000.00
Creditors 8,000.00
Purchases 16,000.00
Overdraft 12,000.00
Closing stock 10,000.00
  • A #35,000.00
  • B #20,000.00
  • C #15,000.00
  • D #14,000.00

The correct answer is D. #14,000.00

Gross profit = Sales - Cost of goods sold

Note that cost of goods sold = Opening stock + purchase - closing stock

= 30,000 + 16,000 - 10,000

= 36,000

GP = 50,000 - 36,000

= 14,000

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