w questions You are to study the following financial statements for two furniture stores and then wwet the questions which follow Financial Statements profit and loss accounts 335.000 750,000 sales less Cost of goods sold Opening stock Add Purchases 80,000 100,000 200,000 320,000 300,000 400,000 Less Clasing stock Gross profit 60,000 (20,000 (330,000 1240,00 315,000 Gross profit 420.000 Less Depreciation 5000 15,000 Wages, salaries and commission , 165,000 220,000 45.000 35.000 Other expenses net profit Balance sheets 215,000 100.000 270,000 150.00 fundos Equipment at cost 50,000 100,000 Less Depreciation to date (40,0001 10,000 (30,0001 70,000 Current assets Stock 60,000 70,000 Debtors 125,000 100,000 Bank 25,000 12.500 1R2,500 210,000 1 Less Current abilities Creditors (104,000) 106.000 (100.500) 82,000 116 000 152.000 Financed by Capitals Balance at start of year 76,000 72,000 Add Net profit 150,000 100.000 176,000 160.000 222.000 less Drawings 70.000) 152.000 Tatal capital 116000 Required: la) Calculate the following ratios for each business Il gross profit as percentage of sales, nel profit percentage of sales: fiil expenses as percentage of sales livl stock turnover I rate of return of net profit on capital employed use the average of the capital account for this purpose vil current ratio vii) atic test ratio: vil debtor/sales ratio fix creditor/purchases rato, Drawing upon all your knowledge of accounting, comment upon the differences and similarities of the accounting ratios for A and B. Which business seems to be the most officient? Give possible reasons