Calculation of Ratios:

a) Gross Profit Percentage:

G.P/Sales * 100

4520/6100 * 100 =75%

b) Expenses as a percentage of sales:

Expense/ Sales *100

27300/6100 * 100 =447.5%

C) Turnover:
C.O.G.S/Average stock

Average stock = Opening stock + Closing stock/2

1349/1820 = 0.36 times per annum

D) Net loss as a percentage of sales:

N.P/Sales * 100
22780/6100 = 373%
E) Rate of return on capital employed (R.O.C.E)
Net profit/capital employed * 100
Capital Employed = opening capital + closing capital/ 2

N.P/ Capital employed * 100

22780/52220 * 100= 44%

Trial Balance for ANACAKES SUPERMARKET

27220 + 77220/2 = 52220

Details
Capital
Cash
Debtors(T. Wilks)
Bank(overdraft)
Creditors: Banco
Sales
Purchases
Cable & Installation Expense
Computer
Wages
Furniture & fixture
Electricity
Telephone
Return Inward
TOTAL

Debit

Credit
100000

40220
960
14600
3000
6100
4980
3000
30000
20000
20000
2500
1800
240
123700

123700

Stock Valuation
FIFO Method
Date

Amount
100

Unit
Cost
30

Total
Cost
$130

Jan 4
Jan 5

20
30

50
40

1000
1200

Amoun
t

Unit
Cost

Total
Cost

Amoun
t
100@

Unit
Cost
30

Total
Cost
3000

100@
20@
30@

30
50
40

3000
1000
1200
5200
2700
1000
1200
3900

Jan 8

10@

30

300

90@
20@
30@

30
50
40

Jan 9

25@

30

750

65@
20@
30@

30
50
40

Jan 18

10@

30

300

55@
20@
30@

30
50
40

55@
20@
30@
2@

30
50
40
120

1650
1000
1200
240
3300

40@
20@
30@
2@

30
50
40
120

1200
1000
1200
240
3640

Jan 19 2

Jan 10

120

15@

30

450
1750

1950
1000
1200
4150
1650
1000
1200

Sales Journal
Date
January 18
January 31

Detail
T. Wilks
Total credit sales
transferred to
sales a/c

Invoice
0004

Folio

Amount
$1200
$1200

Purchases Journal
Date
2012
January 4
January 31

Details
Banco Ltd.
Total credit purchases
transferred to
purchases a/c

Folio

Invoice

Amount

PL7

$3000
$3000

Interpretation of Ratio:

This type of business that I want to engage in is the running of a supermarket that
would be named ANACAKES. This sole trader type business will be supported by
friends and family members. ANACAKES will be engaged in the selling of Cakes,
Desserts, cakes, cupcakes and pastries etc.These are items that will be sold by the
business. Our choise of selling different style, size and taste of our sweet treats will
encourage children to draw closer and want to buy the cakes to support the
business.
Our main objective as a business is to increase our profit by selling the cakes at an
reasonable price and also to expand the business to support more children coming
in to purchase our sweet treats.