Malcolm Phillips is a sole trader who prepares his financial statements annually to 30 April. His summarised
Question:
Malcolm Phillips is a sole trader who prepares his financial statements annually to 30 April. His summarised statements of financial position for the last two years are shown below.
Malcolm is surprised to see that he now has an overdraft, in spite of making a profit and bringing in additional capital during the year. Questions:
(a) Draw up a suitable financial statement which will explain to Malcolm how his overdraft has arisen.
(b) The following further information relates to the year ended 30 April 2012.
Calculate Malcolm’s (i) gross profit margin (ii) rate of inventory turnover.
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Related Book For
Frank Woods Business Accounting
ISBN: 9780273759287
12th Edition
Authors: Frank Wood. Sangster, Alan
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