Trial Balance as at 31st December 2021
  DEBIT ($)CREDIT ($)
Inventory- 1st January 2021 4,400
Carriage Outwards                                 -
Carriage Inwards                                       -
Return Inwards                                       -
Return Outwards                              -
Purchases                                                21,435
Sales                                                                       31,219
Salaries & Wages                               4,304
Rent Received                                                   500
Insurance                                                274
Motor Expenses                                     -
Office Expenses                                 532
Lighting and Heating Expenses 185
General Expenses                          319
Premises                                                7,700
Motor Vehicles                               4,316
Fixtures and Fittings                      1,400
Receivables                                       2,926
Payables                                                              2,829
Cash at Bank                                                       323
Drawings                                            -
Capital                                                               12,920
Loan Repayable by December 2027 -
BALANCE                                       47,791  47,791

NOTE: Inventory- 31st December 2021 7,200
Credit Sales is 35 % of total Sales Value
Credit Purchases is 20 % of total Purchases Value
There is a provision for contigencies of $ 350
Insurance Prepaid is $ 150
Depreciation on motor vehicles is straight line and has a useful life of 5 years with scrap value as $1016.

Part A
Prepare: Prepare income statement and Statement of Financial Position

RATIO ANALYSIS-SAMUEL BOWLER
  20202021
GROSS PROFIT MARGIN                  28.42%
NET PROFIT MARGIN                          32.15%
COST OF SALES TO SALES RATIO57.40%
RETURN ON CAPITAL EMPLOYED 29.25%
ASSET TURNOVER                                147.80%
STOCK TURNOVER                           482.88%
CURRENT RATIO                                    2.24
ACID TEST/QUICK RATIO                 0.82
INVENTORY TURNOVER             311.87%
RECEIVABLES TURNOVER               378.60%
PAYABLES TURNOVER                      126.87%
GEARING RATIO                                     32.24%

Part B
prepare ratio analysis