EXERCISE 11.3 The accountant of Pug Stores prepared the following Statement of Profit or Loss and Statement of Financial Position: PUG STORES STATEMENT OF PROFIT OR LOSS FOR THE YEAR ENDED 31 DECEMBER 2014 R Sales 133 250 Less: Cost of sales 55 500 Gross profit 77 750 Less: Expenses Wages and salaries Electricity and water Bank charges Sundry trade expenses Interest 40 760 21 830 1 357 463 17 110 5 890 Profit R31 100 PUG STORES STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2014 ASSETS R Non-current assets Vehicles, at carrying amount 47 000 Current assets Inventory: Merchandise Accounts receivable control Bank 139 713 82 942 22 456 34 315 R186 713 CAPITAL AND LIABILITIES Capital: Anthony Pugler 139 950 Current liabilities Accounts payable control 46 763 R186 713 REQUIRED: Calculate and comment on the following ratios: (a) (b) (c) (d) (e) (6) The gross profit percentage on turnover. The degree of profitability of owner's equity. The degree of solvency. The current ratio. The acid-test ratio. The net working capital