Use the following question to answer a question that follows. Mr Lesang’s Statement of Comprehensive Income for the year ended 30 April 2020 Pula Pula Pula Sales 259,870 Less Sales returns (5,624) Net Sales 254,246 Less cost of goods sold Opening inventory 15,654 Add purchases 135,680 Add carriage inwards 11,830 Less Returns Outwards (13,407) Net purchases 134,103 Cost of goods available for sale 149,757 Less closing inventory (17,750) Cost of goods sold 132,007 Gross profit 122,239 Add other income: Discount received. 1,750 123,989 Less expenses & losses: Allowance for doubtful debts 223 Discounts allowed 2,306 Carriage outwards 4,562 Rent, rates and insurance 25,973 Less prepaid rates (5,435) Less prepaid insurance (1,120) 19,418 Heating and lighting 11,010 Add accrued heating 1,360 12,370 & lighting Postage, stationery and telephone 2,410 Advertising 5,980 Salaries & wages 38,521 Bad debts 2,008 Mr Lesang’s Statement of Financial position as at 30 April 2020 Cost Accumulated depreciation Net Book Value Non current assets Fixtures and fittings-at cost 120,740 (63,020) 57,720 Current assets Inventory 17,750 Accounts receivable 24,500 Less provision for doubtful debts (735) 23,765 Bank 4,440 Cash 534 Prepayments1 6,555 53,044 Current liabilities Accounts payable 19,840 Accruals 1,360 (21,200) Working capital 31,844 Total assets 89,564 Financed by: Capital 83,887 Add net profit 24,117 Less drawings (18,440) 89,564 Calculate the following ratios: a. Gross profit Margin b. Gross profit Mark up c. Stock turnover d. Net profit margin e. Expenses to sales ratio f. Current ratio g. Acid test ratio h.Return on capital employed i. Accounts receivable ratio j. Accounts payable ratio
Question 2
Use the following question to answer a question that follows.
Mr Lesang’s Statement of Comprehensive Income for the year ended 30 April 2020
Pula Pula
Pula
Sales 259,870
Less Sales returns (5,624)
Net Sales 254,246
Less cost of goods
sold
Opening inventory 15,654
Add purchases 135,680
Add carriage
inwards 11,830
Less Returns
Outwards (13,407)
Net purchases 134,103
Cost of goods
available for sale 149,757
Less closing
inventory (17,750)
Cost of goods sold 132,007
Gross profit 122,239
Add other income:
Discount received. 1,750
123,989
Less expenses &
losses:
Allowance for
doubtful debts 223
Discounts allowed 2,306
Carriage outwards 4,562
Rent, rates and
insurance 25,973
Less prepaid rates (5,435)
Less prepaid
insurance (1,120) 19,418
Heating and lighting 11,010
Add accrued heating 1,360 12,370
& lighting
Postage, stationery
and telephone 2,410
Advertising 5,980
Salaries & wages 38,521
Bad debts 2,008
Mr Lesang’s
Cost
depreciation
Non current assets
Fixtures and
fittings-at cost 120,740 (63,020) 57,720
Current assets
Inventory 17,750
Less provision for
doubtful debts (735) 23,765
Bank 4,440
Cash 534
Prepayments1 6,555
53,044
Current liabilities
Accounts payable 19,840
Accruals 1,360 (21,200)
Total assets 89,564
Financed by:
Capital 83,887
Add net profit 24,117
Less drawings (18,440)
89,564
Calculate the following ratios:
a. Gross profit Margin
b. Gross profit Mark up
c. Stock turnover
d. Net profit margin
e. Expenses to sales ratio
f.
g. Acid test ratio
h.Return on capital employed
i. Accounts receivable ratio
j. Accounts payable ratio
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