Calculation of Sales

Given:
Opening Stock = 50000
Closing Stock = 40000
Purchases = 190000
Profit Margin on Sales = 16.67%

To find:
Sales

Formula:
Profit Margin on Sales = (Profit / Sales) x 100
Profit = Sales - Cost of Goods Sold

Steps:

1. Calculate the Cost of Goods Sold (COGS)
COGS = Opening Stock + Purchases - Closing Stock
COGS = 50000 + 190000 - 40000
COGS = 200000

2. Calculate the Profit
Profit Margin on Sales = (Profit / Sales) x 100
16.67% = (Profit / Sales) x 100
Profit/Sales = 16.67/100
Profit/Sales = 0.1667
Profit = 0.1667 x Sales

Profit = Sales - COGS
0.1667 x Sales = Sales - 200000
0.1667 x Sales - Sales = -200000
-0.8333 x Sales = -200000
Sales = -200000 / -0.8333

3. Calculate Sales
Sales = 240005.76 (rounded off to nearest rupee)

Therefore, the Sales are 240005.76.

Explanation:

- The question requires us to calculate the Sales based on the given information of Opening Stock, Closing Stock, Purchases, and Profit Margin on Sales.
- Using the formula of Profit Margin on Sales, we can calculate the Profit as a percentage of Sales.
- To calculate Profit, we need to find the Cost of Goods Sold (COGS) which is the sum of Opening Stock, Purchases, and Closing Stock.
- Using the formula of Profit, we can equate Profit to Sales minus COGS.
- Substituting the values given in the question, we can solve for Sales using algebraic calculations.
- The final answer is rounded off to the nearest rupee.
- Therefore, the Sales are 240005.76.

COGS - opening stock+purchase-closing stock
COGS=50000+190000-40000
COGS=200000

profit on sale so sale =100%

SALE=COST+PROFIT

100=83.33+16.67

if 83.33% is 200000(cost)
then 16.67=how much(profit)
it's 40009.6 round up =40000

SALE=COST+PROFIT
240000=200000+40000

TOTAL SALE =240000/-