Question 1 Report
(a) Explain the following: (i) turnover (ii) rate of turnover (iii) net profit
(b) The following information is taken from the balance sheet of XYZ Ltd:
N
opening stock 1,000
purchases 10,000
sales 15,000
wages 1,000
closing stock 5,000
You are required to calculate:
(i) the cost of goods sold
(ii) the rate of turnover
(iii) net profit