Neco Model Questions Vol1 2020 Financial Accounting Question 25

An incomplete set of records for a trader shows:\nSales for the year: \(\text{₦}500{,}000\)\nPurchases: \(\text{₦}300{,}000\)\nOpening stock: \(\text{₦}80{,}000\)\nThe gross‑profit ratio is 25 % of sales.\nCash receipts during the year: \(\text{₦}420{,}000\)\nCash payments during the year: \(\text{₦}380{,}000\)\nOpening cash balance: \(\text{₦}20{,}000\)\nAt year‑end the bank overdraft stands at \(\text{₦}15{,}000\).\nOther known cash payments are: Salaries \(\text{₦}45{,}000\), Rent \(\text{₦}30{,}000\), Depreciation on equipment (cost \(\text{₦}120{,}000\)) at 10 %, and cash interest on a loan of \(\text{₦}50{,}000\) at 10 % (interest paid in cash).\nThe remaining cash payments are for cash purchases of raw materials.\nDetermine (a) the closing stock and (b) the net profit for the year.