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 |
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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