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WAEC Financial Accounting 2017 Question 39

Question 39

Interpretation of Accounts

Use the following information (₦): Opening stock 2,300; Purchases 11,874; Sales 18,600; Closing stock 3,000; Cost of goods sold 11,500.
The percentage of gross profit to sales is

  1. A.61.82%.
  2. B.38.17%.
  3. C.28.49%.
  4. D.14.25%.
Show the answer and explanation

Answer: B (38.17%.)

Explanation

Gross profit = 18,600 - 11,500 = 7,100; 7,100 ÷ 18,600 × 100 = 38.17%.