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Homework answers / question archive / Freedom Afloat is a shop which sells canoes and small sailing boats

Freedom Afloat is a shop which sells canoes and small sailing boats

Business

Freedom Afloat is a shop which sells canoes and small sailing boats.On the 1st January 2019 it had in stock 8 canoes which cost £550 each and 6 sailing boats which cost £1000 each.During 2019 the following transactions took place:Canoes   Sailing Boats Purchases per month   Quantity   Price   Quantity   Price January - April   12   £550   10   £1100 May - August   25   £600   15   £1200 September - December   10   £600   8   £1100 Sales per month January - May   7   £850   8   £1500 June - September   32   £900   18   £1600 October - December   10   £900   7   £1650 Employed one sales assistant at £18,500 Employed a part-time fitter at £14,000 Advertised in boating magazines at a cost of £200 per month Paid rent at £2750 per quarter Paid insurance of £1350 Paid a part-time bookkeeper £250 per month to keep the accounts Paid a part-time cleaner £35 per week to clean the shop Had vehicle expenses of £7500 Brought essential fittings for the boats at a cost of £4500 Required:

(a)   Calculate the value of the Opening stock, Purchases, Sales and Closing stock.                            

(b)   Make Trading and Profit and Loss account for the year ended 31st December 2019.                     

(c)   Calculate the gross profit margin and the net profit margin as a percentage of sales.

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