| ₦ | ₦ | ||
| Stock 1/1 | 20,000 | Net sales | 370,000 |
| Add purchases | 250,000 | ||
| Cost of goods available for sale | 270,000 | ||
| Less stock 31/12 | 40,000 | ||
| Cost of goods sold | 230,000 | ||
| Rent expenses | 35,000 |
Calculate the net profit
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Correct Answer: Option C
Explanation:
The net profit is calculated by subtracting the total expenses from the net sales. In this case, the net sales is ₦370,000 and the total expenses (cost of goods sold and rent expenses) is ₦265,000. Therefore, the net profit is ₦370,000 - ₦265,000 = ₦105,000.
The net profit is calculated by subtracting the total expenses from the net sales. In this case, the net sales is ₦370,000 and the total expenses (cost of goods sold and rent expenses) is ₦265,000. Therefore, the net profit is ₦370,000 - ₦265,000 = ₦105,000.