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problem 1: You are to study the given financial statements for two similar kinds of retail store and then answer the below problems:

1693_financial statements.jpg

1786_financial statements_2.jpg


a) Compute the given ratios:

• Gross profit as a percentage of sales
• Net profit as a percentage of sales
• Expenses as percentage of sales 
• Stock turn
• Rate of return of net profit on capital employed 
• Current ratio 
• Acid Test ratio 
• Debtor/Sales ratio
• Creditor/Purchases ratio

b) Comment on the similarities and differences of the accounting ratios for A and B. Which business seems to be the most proficient? Give reasons.

problem 2: Accounting concepts, primary or else, are central to the preparation of objectives and accurate final accounts.


Describe the above statement with exact reference to the five primary concepts?

Financial Accounting, Accounting

  • Category:- Financial Accounting
  • Reference No.:- M96920

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