The following details appears in the final accounts of a sole trader's business. 8 400...
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Accounting
The following details appears in the final accounts of a sole trader's business. 8 400 Current assets Current liabilities Gross profit Net profit Purchases 4 000 5 000 2 400 16 000 Sales 21 000 30 000 Capital NB: The opening and closing stocks, being identical figures, are not shown. Required Answer the following questions: a) What is the ratio between current assets and current liabilities, and is it a satisfactory one? b) What is the percentage gross profit on turnover? c) What is the average mark-up percentage on purchases? d) What is the capital yield to the owner expressed as a percentage? e) Would the owner do better by Investing his capital in a building society at 7% per annum
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