Neco 2021 Financial Accounting Question 3

A merchandising firm provides the following information for the year ended 31 December 2021:\n\n- Opening stock: \(\text{₦}45,000\)\n- Purchases: \(\text{₦}120,000\)\n- Purchase returns: \(\text{₦}5,000\)\n- Carriage inwards: \(\text{₦}2,000\)\n- Opening trade receivables: \(\text{₦}30,000\)\n- Sales: \(\text{₦}210,000\)\n- Sales returns: \(\text{₦}8,000\)\n- Closing trade receivables: \(\text{₦}25,000\)\n- Gross profit rate: 25% of net sales\n- Cash receipts from customers during the year: \(\text{₦}190,000\)\n- Overheads paid: \(\text{₦}15,000\)\n- Net profit for the year: \(\text{₦}18,000\)\n\nThe closing stock figure is missing. Determine the value of the closing stock and the cash payments made to suppliers during the year. Assume the opening cash balance was \(\text{₦}20,000\) and the closing cash balance was \(\text{₦}22,000\).