Question 1 (20 marks 36 minutes) 1.1 Name and explain the underlying assumptions of financial statements (8 marks) 1.2 Given the following information for Garises Ltd, calculate the following ratios: (12 marks) Current ratio Gross profit over sales Stock turnover Garises Limited as at 31 December 2011 Dr Cr Sales 95 000 Cost of sales 59 000 Closing stock 5 500 Opening stock 6 500 Current liabilities 21 000 Bank 5 200 Cash 800 Debtors 19 500 Question 2 (20 marks 36 minutes) With information on the following table: a) Calculate the closing inventory and draw up a trading account using the weighted average method (9 marks) b) Calculate the closing inventory using FIFO. (11 marks) Received Sold Date Date Jan 10 @ N$20 each Jun 8 @ N$70 Feb 20 @ N$30 each Sep 15 @ N$75 July 10 @ N$40 each