▁Cl osing ▁invent ory ▁Cost ▁of ▁sales ▁= ▁£ 1 3 5 2 0 ▁- ▁£ 2 0 0 0 ▁Cost ▁of ▁sales ▁= ▁£ 1 1 5 2 0 ▁ ▁G ross ▁profit ▁calculation : ▁G ross ▁profit ▁= ▁Sales ▁- ▁Cost ▁of ▁sales ▁G ross ▁profit ▁= ▁£ 1 3 1 0 0 ▁- ▁£ 1 1 5 2 0 ▁G ross ▁profit ▁= ▁£ 1 5 8 0 ▁ ▁Rat io ▁calculation ▁O ften , ▁information ▁in ▁the ▁trad ing ▁statement ▁is ▁left ▁out ▁and ▁it ▁is ▁up ▁to ▁the ▁book keeper ▁to ▁determine ▁the ▁missing ▁value . ▁This ▁is ▁a ▁very ▁popular ▁book keep ing ▁exam ination ▁type ▁question . ▁The ▁best ▁way ▁to ▁go ▁about ▁solving ▁the ▁unknown ▁variable ▁being ▁either ▁sales , ▁cost ▁of ▁sales ▁or ▁gross ▁profit ▁is ▁to ▁make ▁use ▁of ▁a ▁ratio ▁calculation . ▁ ▁W ant / Have ▁method ▁Using ▁the ▁example ▁above , ▁we ▁can ▁clearly ▁determine ▁all ▁three ▁variables ▁( s ales , ▁cost ▁of ▁sales ▁and ▁gross ▁profit ) ▁as ▁all ▁of ▁the ▁information ▁is ▁provided ▁in ▁the ▁question . ▁If ▁for ▁instance ▁the ▁question ▁did ▁not ▁st ip ulate ▁both ▁the ▁sales ▁and ▁the ▁cost ▁of ▁sales ▁figures ▁though ▁the ▁gross ▁profit ▁figure ▁was ▁given , ▁a ▁ratio ▁calculation ▁can ▁then ▁be ▁performed . ▁For ▁a ▁ratio ▁calculation , ▁the ▁question ▁will ▁have ▁additional ▁information ▁regarding ▁the ▁mark - up ▁percent ages ▁of ▁the ▁sales , ▁cost ▁of ▁sales ▁and ▁gross ▁profit ▁figures . ▁ ▁References ▁ ▁Category :