A retail business has sales of £100,000 cost of goods sold of £35,000 salaries of £15,000 rental of £4,000 and advertising of £8,000. All of the income and expenses have been paid out of the owner’s initial capital of £25,000. In addition, the business paid cash of £30,000 for stock (which remains unsold) and purchased equipment on credit for £20,000. The financial statements of the business would show:
b) Profit of £38,000 cash of £33,000 and capital of £63,000