White and Black are sole traders. Both are wholesalers dealing in a similar range of goods. Summaries of the profit calculations and statements of financial position for the same year have been made available to you, as follows:

Required
Compare the performance and financial position of the two businesses on the basis of the above figures, supporting your comments where appropriate with ratios and noting what further information you would need before reaching firmer conclusions.

Transcribed Image Text:

Statements of profit or loss for the year White Sales revenue Cost of goods sold Gross profit Administrative expenses Selling and distribution expenses Depreciation - equipment and vehicles Depreciation - buildings Profit for the year £'000 (64) (28) (10) li £'000 600 (450) 150 (102) 48 £'000 (63) (40) (20) Black (5) £'000 800 (624) 176 (128) 48