(a) VIP Enterpises

Income Statement
For the ended 20 November 2011
$ $
Sales 123,620
Cost of sales 45,700
Gross Income 77,920

Less: Expenses
Miscellaneous expenses 52,400

Net Income 25,520

b. VIP Enterpises
Statment of Financial Position ( Balance Sheet )
As at 30 - 11 - 2011

Non-Current Assets: $
Premises
Equipment
Vehicles
Bank Fixed deposit
Total Non-Current Assets
Current Assets
Inventory 12,500
Debtors 10,600
Cash 9,300
Prepaid Insurance 390

Current Liability:
Creditors 23,000
Rent owing 1,080
Working Capital
Net Assets
Financed By:
Non-Current Liability
5-Year Bank Loan
Capital
Add: Capital Indtroduced during the year
Less: Drawings
Net Income
Total Non-Current Liabilities and Capital
 es (c)
n ( Balance Sheet ) No.
011
1
$ $
105,520
72,190
75,000
6,800 2
259,510

32,790

24,080
8,710
268,200

25,600 25,600
200,000
20,000
2,900 217,100
25,520
268,200
 Ratio Calculations
Ratios Formula Workings Results

Stock Turnover Cost of sales 45,700 5 times

Average Inventory 5,780 + 12,500 ÷ 2

Return on captial employed Profit before interest × 100 25,520 × 100 9.51%
capital employed 268,220