Jim Crow’s Sporting Goods StoreP&L Statement for the year ended on 31 st December 2014

Note: Credit sales are 30% of total net sales revenue.

REVENUESales Revenue 164900Less: Sales Return 850Net Sales 164050

COST OF GOODS SOLDCost of goods Sold 74800Custom duty 1800 76600

Gross Profit 87450Add: Service Revenue 7600

Adjusted Gross Profit 95050

EXPENSESa) SellingSales Staff Salary 35600Depreciation – Delivery Vehicle 7500 43100

b) General/administrativeUtility Expense 2900Office Expense 15700Rent Expense 5400 24000

c) FinancialInterest Expense 800Bad Debt 402 1202

Total operating expenses 68302

NET PROFIT/(LOSS) 26748

Owner’s EquityCapitalAdd: Net ProfitLess: Drawings

Represented by:Current Assets CashAccrued Service RevenuePrepaid Rent ExpenseDebtor Inventory

Fixed Assets Delivery VehicleLess: Accumulated depreciationFurniture

Total Assets

Current LiabilitiesCreditor

Deferred Liabilities Loan

Total Liabilities

Net Assets

$

88901400100

1784851810

52000(29500)36550

$

80048

59050

16800

42000

$

6595026748

(12400)80298

139098

58800

80298

Jim Crow’s Sporting Goods StoreBalance Sheet as at 31 st December 2014

O/E from 2013 is $65950; debtor of 2013 is $23800; inventory of 2013 is $43750.

Profitability Ratios 2013 2014 Interpretation

Return on Equity(ROE) 28.6%

Net Profit Margin (NPM) 13%

Gross Profit Margin (GPM) 47%

Selling Exp. Ratio (SER) 27.2%

General Exp. Ratio (GER) 5.8%

Financial Exp. Ratio (FER) 1%

Profitability Ratios 2013 2014 Interpretation

Working Capital3.03: 1

Total Debt 47.3%

Stock Turnover270 days

Debtor Turnover54.8 days

Interest Coverage 16 times