Bridle runs a small antiques shop in Chichester. He has provided extracts from two years final accounts.

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Bridle runs a small antiques shop in Chichester. He has provided extracts from two years’ final accounts. He would like you to analyse the accounts to assess the profitability of the firm. Extracts from financial statements are as follows:

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a. Calculate for both years the following ratios:
i. return on capital employed;
ii. gross profit margin;
iii. net profit margin.

b. Using your results from (a), analyse the profitability of the shop.

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Accounting For Non-Accountants

ISBN: 9781789664300

12th Edition

Authors: David Horner

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Question Posted: May 27, 2024 02:10 AM

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Bridle runs a small antiques shop in Chichester. He has provided extracts from two years final accounts.

Question:

2028 2029 Sales 31,234 38,770 Cost of sales 17,970 23.133 Gross profit 13,264 15,637 Overheads 6.456 10,801 Net profit 6.808 4.836 Capital employed 90.940 102,013

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a b Relevant points to make would in...View the full answer

Accounting For Non-Accountants

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