Self-test You are given the following financial information for Rekon Ltd and are required to calculate the gross profit margin, mark-up, net profit margin and return on capital.

Profit and loss account for the year ended 31 December 2009 Turnover 312,524 Cost of sales 269,332 Gross profit 43,192 Administrative expenses 33,633 Profit before interest 9,559 Interest receivable 4,606 Interest payable (3,058)

Net profit before tax 11,107 Taxation 3,902 Profit after taxation 7,205 Balance sheet as at 31 December 2009 Fixed assets 32,000 Current assets 48,403 Current liabilities (16,290)

Net current assets 32,113 64,113 Creditors falling due after more than one year (19,082)

45,031 Share capital – 1,788 ordinary shares of £1 each 1,788 Share premium account 6,020 Other reserves 2,827 Profit and loss account 34,396 45,031