The Following Information Is Available from the Trial Balance of Valentines

question 9

Multiple Choice

The following information is available from the trial balance of Valentines company as at 31 Dec Year 3:
$$\begin{array} { l c c } & \text { Debit } & \text { Credit } \\& £ & £ \\\text { Sales revenue } & & 110,000\\\text { Inventory at 31st Dec Year 1 } & 7,000 \\\text { Purchases } & 18,750 &\end{array}$$

Closing inventory as at 31st Dec year 3 is £5,250.Calculate the cost of goods sold.

• A) £31,000
• B) £20,500
• C) £25,750
• D) £20,750

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Definitions:

Market Share

The percentage of an industry's sales that a particular company controls.

Ancillary Sales

Additional revenue generated from goods or services that complement a company's main business operations.

Customer Loyalty

The tendency of consumers to continue buying from the same brand or company, often due to satisfaction, convenience, or perceived value.

Business Strategy

A plan of action designed by an organization to achieve its vision and goals, outlining the steps the business will take to compete effectively in its industry.