Recognizing transactions (question 14 – 19):
For the remaining questions, please consider the following transactions that happened in The Dorchester Company Ltd. in 2015 (amounts in £000):
· Credit sales amounted to 5,000 (nothing was paid by year-end).
· Cash sales amounted to 3,000.
· Purchases of inventory (on account) amounted to 10,000 (7,000 were paid by year-end).
· Cost of goods sold amounted to 6,000.
· Sales and administration expenses (all paid in cash) were 1,450.
· At the end of the year, the company paid 50 for the annual interest accrued on a loan.
· Depreciation of 100 was recorded at the end of the year.
What is the gross profit of the company?