What is the gross profit?

Use the information below to answer this question.

Trading Account (Extract)

……………………………..N……………………………….N……
Opening stock…19500……..Sales…………96 000.
Add purchases…68700……………………………
………………………….88200……………………………
Less closing stock..?……………………………
Cost of goods sold..?……………………………
Gross profit C/D….?……………………………
………………..?……………………..?……
The gross profit margin is 20%

A. N88 200
B. N76 800
C. N 19 200
D. N12 900

Correct Answer:

Option A – N88 200