Q2 The following was extracted from the accounting records of a trader on 28 February 2015: Extracts from the income statement: Total sales 217 750 Cost of sales 124 430 Net profit 54 430 After the capital account had been credited with the above net profit, the balance sheet reflected the following balances: Land and buildings…………………………………………………………218 400 Equipment at carrying value.........................................................41 300 Capital…………………………………………………………………………314 400 Long term loan……………………………………………………………59 200 Investment……………………………………………………………………54 600 Current assets…………………………………………………………………134 900 Creditors control……………………………………………………………75 600 Debtors control………………………………………………………………36 400 Bank (dr)…………………………………………………………………………33 600 ADDITIONAL INFORMATION: 1. Credit sales represent 60% of total sales. 2. Creditors allow 3 months credit. 3. Similar industries in South Africa have a stock turnover rate of 3 times per annum. REQUIRED: 4.1. Calculate the following for the business for 2015, the first year of trading. 4.1.1. Gross profit percentage on turnover 4.1.2. Debtors collection period (in days)
Q2
The following was extracted from the accounting records of a trader on 28 February 2015: Extracts from the income statement:
| Total sales | 217 750 | |
| Cost of sales | 124 430 | |
| Net profit | 54 430 |
After the capital account had been credited with the above net profit, the balance sheet reflected the following balances:
Land and buildings…………………………………………………………218 400
Equipment at carrying value.........................................................41 300
Capital…………………………………………………………………………314 400
Long term loan……………………………………………………………59 200
Investment……………………………………………………………………54 600
Current assets…………………………………………………………………134 900
Creditors control……………………………………………………………75 600
Debtors control………………………………………………………………36 400
Bank (dr)…………………………………………………………………………33 600
ADDITIONAL INFORMATION:
1. Credit sales represent 60% of total sales.
2. Creditors allow 3 months credit.
3. Similar industries in South Africa have a stock turnover rate of 3 times per annum.
REQUIRED:
4.1. Calculate the following for the business for 2015, the first year of trading.
4.1.1. Gross profit percentage on turnover
4.1.2. Debtors collection period (in days)
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