Financial Statements E Profit and loss accounts Sales Less Cost of goods sold Opening stock 555,000 750,000 100,000 80,000 Add Purchases 200,000 320,000 300,000 400,000 Less Closing stock (60,000) (240,000) (70,000) (330,000) Gross profit 315,000 420,000 Less Depreciation 5,000 15,000 Wages, salaries and commission 165,000 220,000 Other expenses 45,000 (215,000) 35,000 (270,000) Net profit 100,000 150,000 Balance sheets Fixed assets Equipment at cost 50,000 Less Depreciation to date (40,000) 10,000 100,000 (30,000) 70,000 Current assets Stock 60,000 70,000 Debtors 125,000 100,000 Bank 25,000 12,500 210,000 182,500 Less Current liabilities Creditors (104,000) 106,000 (100,500) 82,000 116,000 152,000 Financed by Capitals Balance at start of year Add Net profit Less Drawings 76,000 100,000 72,000 150,000 176,000 (60,000) 116,000 222,000 (70,000) 152,000 Required: (a) Calculate the following ratios for each business: (i) gross profit as percentage of sales; () net profit as percentage of sales, (i) expenses as percentage of sales; (v) stock turnover, (v) rate of return of net profit on capital employed (use the average of the capital account for this purposel (w) current ratio; (vi) acid test ratio: (viii) debtor/sales ratio; (ix) creditor/purchases ratio.