AIM: 1. 2. 3. 4.

To be able to run the business successfully by using the knowledge gained in class To make a profit of no less than ($1000.00) one thousand dollars To utilize the liquid resources of the business efficiently To enable me to gain practice in the preparation and interpretation of final accounts

DESCRIPTION OF THE BUSINESS The name of the business is Jays fashions. It is a sole trader business owned and operated by me Jamie Simon. The purpose of the business is to provide the public with goods to satisfy their need and wants. The business will be operated with the intentions of providing the public with brand name shoes and clothing; like Puma, Nike, Jordan, Prada and Aeropostale items. Jays Fashions will be open at 10:00am 8:00pm, Monday to Saturday. It will be located at the Lowlands mall. The accounting records are prepared for the month of February 2012.

The accounting procedures used was the ciccruals basis of accounting. 12 20 Transaction Listing (a) (b) (c) (d) (e) (f) (g) (h) (i) (j) (k) (l) Feb 1 Started business with $6000.00 in the bank Feb 2 Purchased goods on credit from J. More 300 Feb 5 sold goods for cash 300 Feb 6 sold goods to K.King 450 cash Feb 9 paid J.More by cash 50 Feb 14 bought motor van by cheque 1000 Feb 15 returns outwards to J.More 50 Feb 19 sold goods to K.Jack 250 on credit Feb 21 return inwards from K.Jack 25 Feb 22 paid salary for the month by cash 800 Feb 26 bought equipment by cheque 600 Feb 28 paid rent by cheque 500

PURCHASES INVOICE J. More 25 Green Street Port-of Spain Phone: 639-1388 Invoice # 5262A Date: Feb 2, 2012 Customer: J. Fashions Lowlands Mall Tobago Phone: 660-4458

QUANTITY

DESCRIPTION

PRICE PER UNIT $

TOTAL

300

SHOES

0.60

180.00

96

CLOTHES

1.25

120.00

TOTAL AMOUNT DUE: TOTAL AMOUNT RECEIVED: BALANCE:

$300.00 $0.00 $300.00

RECEIPTS

J. More Lowlands Mall Tobago Phone: 660-4458 Receipt # C109 Date: Feb 6,2012 Customer: K. King 5 Cool Street Wetland Phone: 096-6697

QUANTITY

DESCRIPTION

PRICE PER UNIT $

TOTAL

18

SHOES

25.00

450.00

TOTAL AMOUNT DUE: TOTAL AMOUNT RECEIVED: BALANCE RECEIVABLE:

$450.00 $450.00 $0.00

J. More 14 Main Street Port-of-Lane Phone: 639-1388 Credit Note # K42 Date: Feb 15, 2012 Customer: Jay Fashions Lowlands Mall Tobago Phone: 660-4458

QUANTITY

DESCRIPTION

PRICE PER UNIT $

TOTAL

25

SOCKS

2.00

50.00

TOTAL $50.00

STATEMENT OF PERFORMANCE For the month of February 2012 it can be seen that my business has not performed successfully. It obtained a net loss of ($100.00) one hundred dollars and a gross profit of ($600.00) six hundred dollars.

RATIO OF ANALYSIS: PROFITABILITY RATIOS: (1.) Net Profit Margin: This is the net profit earned for each dollar of sales made, expressed as a percentage.

Net Profit Margin =

net loss *100 net sales 100*100 700 =14.28%

This means the net loss is 14 cents for each dollar of sales earned.

(2.) Gross Profit Margin This is the gross profit earned for each dollar of sales made, expressed as a percentage. Gross Profit Margin = gross profit * 100 net sales 600 *100 750 = 80% This means that gross profit is 80 cents for each dollar of sales earned.

(3.) Rate of Turnover This calculates the number of times average stock is replaced or sold in an accounting period.

Average stock =

(opening + closing stock) 2 cost of goods sold average stock = 0+100 2 $50.00 150 50 3 times

Rate of turnover =

= =

This means that for the period average stock was replaced 3 times

(4.) Net Express Margin This is the amount of expenses incurred for each dollar of sale, expressed as a percentage.

Net express margin =

Total expenses * 100 Net sales = 700 * 100 750

= 93.33% or 93%

My business has not performed as successfully through all of the ratios that I tested. My net profit margin had a loss of (14%) fourteen percent; gross profit margin earned (80%) eighty percent for each dollar of sales. Rate of turnover was covered three times and my net expenses margin was very high with a (93%) ninety three percent for each dollar of sales.

COMPARTSIONS Capital at beginning of the month - $6000.00 Capital at the end of the month $5900.00

FIGURE 1

6000

5900

OPENING CAPITAL

CLOSING CAPITAL

FIGURE 2

750

WK 1

WK 2

WK3

WK4

4400

1600

FIXED ASSETS

CURRENT ASSETS

For my compartsians as you can see the column charts for each of them at figure 1.for my opening capital at $6000.00 and closing capital at $5900.00 the chart shows what is taking place. Figure 2. illustrates that in week 1 there was $750.00; week 2 there was no sales; week 3 there were no sales again. Figure 3. demonstrates that fixed assets were at $1600.00 and current assets were at $4400.00