1 The following information is available for the years 2007, 2008, and 2009: The stock valuations used above at the end of 2007 and at the end of 2008 were inaccurate. The stock at 31 December 2007...

1

The following information is available for the years 2007, 2008, and 2009:

The stock valuations used above at the end of 2007 and at the end of 2008 were inaccurate. The

stock at 31 December 2007 had been under-valued by £1,000, whilst that at 31 December 2008 had

been over-valued by £3,000.

Required:

(a) Give the corrected figures of gross profit for each of the years affected by the errors in stock

valuation.

(b) Usingthe figures in the revised trading accounts, calculate for each year:

(i
) the prcentage of gross profit to sales, and

(ii
) the rate of turnover of stock.