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