Question 3 Jeremy Waite runs a small antiques shop. He is a sole trader and views the shop as a 'hobby more than a job'. He is curious about the financial performance of the shop and has provided extracts from two years' final accounts. He would like you to analyse the accounts to assess the profitability of the firm. The sales and balance sheet extracts are as follows: 2010 2011 $ S 16,544 14,870 Sales Cost of goods sold 9,536 8,390 Gross profit Overheads 7,008 6,480 3,119 4,890 3,889 1,590 Net profit Capital employed 59,490 57,980 Required (a) Calculate for both years the following ratios: (i) Return on capital employed (ii) Gross profit percentage (iii) Net profit percentage