For the year ended 31 Dec. 2018 £000 For the year ended 31 Dec. 2019 £000 £000 £000 6,000 Sales revenue Cost of sales Opening inventory Purchases 4,800 1,200 2,700 450 4,800 3,900 (450) 5,250 (4,350) Less: Closing inventory Gross profit Operating expenses Finance cost Net profit (3,450) 1,350 (600) (150) 600 (900) 1,650 (675) (300) 675 As at year to 31 Dec. 2018 £000 As at year to 31 Dec. 2019 £000 6,000 Statement of financial position £000 £000 Non-current assets 2,955 Current assets Inventory Receivables – trade Prepayments Cash 450 900 90 75 750 1200 105 15 2,070 8,070 900 300 1,650 2,850 1,515 4,470 Issued share capital Share premium account Retained earnings 900 300 1,125 2,325 Non-current liabilities 10% loan notes Current liabilities Payables – trade Accruals 1,500 3,000 570 75 2,100 120 2,220 645 4,470 8,070
For the year ended 31 Dec. 2018 £000 For the year ended 31 Dec. 2019 £000 £000 £000 6,000 Sales revenue Cost of sales Opening inventory Purchases 4,800 1,200 2,700 450 4,800 3,900 (450) 5,250 (4,350) Less: Closing inventory Gross profit Operating expenses Finance cost Net profit (3,450) 1,350 (600) (150) 600 (900) 1,650 (675) (300) 675 As at year to 31 Dec. 2018 £000 As at year to 31 Dec. 2019 £000 6,000 Statement of financial position £000 £000 Non-current assets 2,955 Current assets Inventory Receivables – trade Prepayments Cash 450 900 90 75 750 1200 105 15 2,070 8,070 900 300 1,650 2,850 1,515 4,470 Issued share capital Share premium account Retained earnings 900 300 1,125 2,325 Non-current liabilities 10% loan notes Current liabilities Payables – trade Accruals 1,500 3,000 570 75 2,100 120 2,220 645 4,470 8,070
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter6: Cost Of Goods Sold And Inventory
Section: Chapter Questions
Problem 73BPSB: ( Appendix 6B) Inventory Costing Methods Grencia Company uses a periodic inventory system. For 2018...
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(i) Return on capital employed
(ii) Net profit margin
(iii)
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