hey, me again! can someone pls help me with this question, i dont know what numbers go where? thanks so much and i promise this is the last question that i will ask regarding past papers! tysm xx

Hey again!

So in order to work this question out the first thing we need to do is work out the Cost Of Goods Sold (COGS) which is given by the formula:

*Opening stock + purchases - closing stock = COGS*Most questions will give you COGS but you should also know how to work it out

So now we sub in what we know:

36000 + 74500 - 6500 = 104000

**Therefore COGS = $104000**Now to find Gross Profit we use

*Sales - COGS = Gross Profit*Sub in what we know:

220000 - 104000 = 116000

*Therefore Gross Profit = $116000*Making the answer to question 5

**A**Now to find Net Profit we use

**Gross Profit - Total Expenses = Net Profit**So now we know that the rest of the figures we have been given are all expenses, these are:

Interest charges, Bad debts, Petrol expenses, Wages, Rent paid, Electricity and Advertising.

Sub into the formula now:

116000 - 40900 = 75100

**Therefore Net Profit = $75100**Making the answer to question 6

**D**Hope this helped! (also feel free to ask as many questions as you need, it's what the forums are for!

)