CapeTronix (Pty) Ltd is a retailer that specialises in consumer electronics. The company buys from wholesalers or producers, and sells to the public through its store. As it is a small business and does not have the staff or financial resources to run a complex inventory management system, it uses the periodic inventory system. It has been operating successfully for a few months, with an opening inventory of R124 000 in its stock room as of the evening of 30 April 2017. Unless otherwise stated, it sells all goods at a markup of 40% on cost. Study the transactions by the business that occurred during the month of May and then answer the questions that follow (ignore any VAT implications). Day Details 2 Bought in stock from suppliers for R23 000. 6 Weekly sales to customers totalled R32 500. 9 Bought in stock from suppliers for R18 000. Also purchased a new cash register for R3 600. 13 Weekly sales to customers totalled R47 900. 15 Paid mid-month sales commission to staff – R3 400. 16 Bought inventory from wholesaler going out of business. Paid 25% less than usual for inventory valued at R17 000. This merchandise can still be sold to the public for its original intended retail price. 20 Weekly sales to customers totalled R21 200. 23 Inventory purchases of R9 300 from one supplier and R6 100 from another. 27 Pay-day sales promotion means weekly sales come in at a record R65 000. 30 Wholesalers and suppliers shut for international holiday, so no purchases this week. 31 Paid staff wages and top-up commission of R14 000, but no further sales to customers have taken place since the 27th. 31 Stocktake done, showing a total stock value of R67 250 in the storeroom. 2.1 Given the markup cost, calculate the gross margin on sales. (3 marks) Start writing here: 2.2 Calculate the total sales amount total for the month. (2 marks) Start writing here: 2.3 Calculate the purchases total for the month. (2 marks) Start writing here: 2.4 Calculate the cost of total sales for the month. (3 marks) Start writing here: 2.5 Using your
