Arthur deals in bicycles. His business position at 1 October was as follows:

Capital £3,369 Inventory £306 (3 x Model A bicycles @ £54 and 3 x Model B @ £48)

Balance at bank £3,063 Having established good relations with his supplier he is able to obtain bicycles on one month's credit.

He kept notes of all transactions during October which he then summarised as follows:

(1) Purchased on credit from Mr Raleigh: 12 Model A at £54 and 10 Model B at £48. Total purchase £1,128.

(2) Sales for cash were; 11 Model A at £81 and 8 Model B at £72.

(3) Paid rent by cheque £60, advertising £66 and miscellaneous expenses £12.

(4) Drawings were £150.

Arthur's valuation of the closing inventory was £456 as at 31 October.

Required:

(a) Prepare a statement showing the bank transactions during October.

(b) Check the closing inventory valuation.

(c) Prepare a statement showing the gross profit and net profit for October and calculate the percentages of gross profit to sales and net profit to sales.

(d) Prepare a statement of profit or loss for the month of October together with a statement of financial position as at 31 October.

(e) Prepare a statement to show where the profit for the month has gone.