Telpin association ltd made sales of $690000 and had cost of goods sold of $390000. Stock decreased by $15000 and creditors decreased by $9000.operating expenses were $175000.

How much will the net profit for telpin ltd be for the year?

I am doing my calculations but the art that says the stock decreased by $15000 is having me thinking twice and having my answer un sure to me...

I found the gross profit to be $300000 when I subtracted the cost of godds sold from the sales.. and then I subtracted the operating expenses to get the net profit of $125000.. but I'm still here thinking if I should add the stock figure to the COGS and then subtract it to get the gross profit.. im a bit confused can anyone try to help me understand if I should use the stock figure as well.. please thanks

I can see why you are confused. The $15,000 decrease in inventory stock would cause an increase in COGS, but what I'm not sure of is whether the $390,000 already includes the $15,000. Is this the way your question was worded or did you rewrite it? I think you understand fine, but the question isn't clear.

Yes that's the way the question is I didn't rewrite it...

We have the similar question

If I were you, I'd either speak to the teacher or another student in class and see how they interpret it.