00 Question 2 70 The following details appeared in the final accounts of a sole trader's business. 0 5 R Current assets Current liabilities Gross profit Net profit Purchases Sales Capital 8 400 4 000 5 000 2 400 16 000 21 000 30 000 The opening and closing stocks, being identical figures, are not shown. AB Required Answer the following questions: (a) What is the ratio between current assets and current liabilities, and is it a satisfactory one? (b) What is the percentage gross profit on turnover? (c) What is the average mark-up percentage on purchases? (d) What is the capital yield to the owner expressed as a percentage? (e) Would the owner do better by investing his capital in a building society at 7% per annum? (15) Question 3