A company's financial statements show a gross profit of $15 million.

Vendor: CIMA
Product: BA3
Update on: Jul 29, 2025
Questions: 393

CIMA BA3 Question Answer

A company's financial statements show a gross profit of $15 million. A major error in the inventory value system has been discovered resulting in an overstatement on opening inventory of $1.2 million and an understatement in closing inventory of $1.5 million.

What is the correct gross profit figure for the period?

$17.7 million

$15.3 million

$14.7 million

$12.3 million