The following information should be used to answer questions

-If the purchases had been undercast by £1,000 the gross profit would be:

Question

The following information should be used to answer questions  
 
-If the purchases had been undercast by £1,000 the gross profit would be:

Quizplus · Accepted Answer

If purchases were undercast by £1,000, it means the cost of goods sold was understated by £1,000. Correcting this would increase the cost of goods sold by £1,000, thereby reducing the gross profit by £1,000. If the original gross profit was £6,150, reducing it by £1,000 gives £5,150.

The Following Information Should Be Used to Answer Questions