Question 2 please

Required e Income statement for the year ended 31 December 2005. Balance sheet at 31 December 2005. (b) Comparative figures are NOT required. NB (20) 500 Question 2 370 e The following details appeared in the final accounts of a sole trader's business. R 20 75 60 00% 80 75 50 00 40 70 40 Current assets Current liabilities Gross profit Net profit Purchases Sales Capital 8 400 4 000 5 000 2 400 16 000 21 000 - 30 000 GP = 5000 NB The opening and closing stocks, being identical figures, are not shown. Required Answer the following questions: (a) 30 O What is the ratio between current assets and current liabilities, and is it a satisfactory one? -5 (b) What is the percentage gross profit on turnover? What is the average mark-up percentage on purchases? (c) CO 0 (d) (e) What is the capital yield to the owner expressed as a percentage? Would the owner do better by investing his capital in a building society at 7% per annum? (15) 0 Question 3 The balance sheet of a sole trader revealed the following position. Fixed Assets R R 9 170 15 570 10 250 34 990 Land and buildings Equipment at cost less depreciation Goodwill at cost less amounts written off 2 200 Investment in shares at cost Financial Accounting I/ CICG / Page 58