If the opening stock is 5% of sales. calculate the purchases
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Correct Answer: Option C
Explanation:
opening stock + cost of goods sold - closing stock = purchase
Remember COGS was given as;
cost of goods sold = sales - profit (10% of sales)
100,000 - 10,000 = 90,000
Hence we have;
purchase = 5,000 + 90000 - 5,600 = 90,600
opening stock + cost of goods sold - closing stock = purchase
Remember COGS was given as;
cost of goods sold = sales - profit (10% of sales)
100,000 - 10,000 = 90,000
Hence we have;
purchase = 5,000 + 90000 - 5,600 = 90,600