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Performance Statement
Transactions were recorded for the month of April. Sales were
$7684, Purchases were $4085.76, Gross Profit was $3510.30 and
a Net Profit of $266.30. The canteen made a profit within the 30
day period.

Ratios
1. Gross Profit/Sales x 100
3510.30/7685 x 100/1

45.7%

2. Net Profit/Sales x 100/1

2660.30/7685 x 100/1

34.6%

3. Total Expenses/Sales x 100/1

850/7685 x 100/1

11.1%

4. Net Profit/Capital x 100/1

2660.30/10373.34 x 100/1

25.6%

5. Average Stock
Opening Stock + Closing Stock/2
373.34+2104.40/2

$291.87

6. Rate Of Stock Turnover

COGS/Average Stock
4174.70/291.87

14.3 times

7. Working Capital
Current Assets-Current Liabilities
210.40 +2823.24

3033.64

Ration Analysis
Gross Profit/Sales x 100
This shows the Gross Profit as a percentage of sales. The
higher the figure is the better. For every $100 of $45.70 was
the gross profit.
Net Profit/Sales x 100
This shows how much net profit has been made for every
$100 of sales. The calculation of expenses are involves and
the higher this figure is the more profit the business makes.
Total Expenses/Sales x 100
This is the expenses of the business as a percentage of
sales. If the figure is high this means the business is
spending a lot. The lower this figures the higher of
profitability of the business.
Return On Capital
This is the net profit as a percentage of the capital. The
capital is the money put into the business to start it. The
higher this figure is the more profit the business makes.
Average Stock
This is the average value of stock at any one time.

 Rate of Stock Turnover

This is the number of time the average stock is sold for a
certain period. The canteen sold its average stock 14.3 times
for April. The higher the figure is the higher the sales and
profit.

Net Profit/Sales x 100/1

This represents how much Net Profit has been made for
every $100 of sales. It includes the expenses in the
calculation and the higher this figure is the more profit the
business makes.
Working Capital
The difference between current assets and current
liabilities.

Ratio Comparisons
1. Opening Stock $373.34 and Closing Stock $210.40. The
value of stock is lower at the end of the month because the
sales figure was higher for the month of April.
2. Opening Capital $10373.34 and Closing Capital 13033.64.
The closing stock was larger because the value of net profit
was added to the opening capital for its value.
3. Purchases Week 1 $1037.46 and Purchases Week 4
$548.60.

Diagram
Bar Graph Showing Purchases and Sales per Week.

2000
1800
1600
1400
1200
Purchases

1000

Sales

800
600
400
200
0
Week 1

week 2

Week 3

Week 4

Week 5

Pie Chart Showing the Gross Profit, Net Profit And Expenses Of April 2016

Gross Profit
Expenses
Net Profit

Recommendations
Non-Accounting: increase sales-by advertising, conducting
surveys to change the range of food and drinks.
Accounting: continue with the double entry book keeping
and ledger accounts as to calculate profits on a monthly
basis so comparisons of profit can be made to previous
months