Home Appliances is a shop which sells washing machines and cookers.
On the 1st January 2019 it had in stock 20 washing machines which cost £235 each and 25 cookers which cost £515 each.
During 2019 the following transactions took place:
Bought 30 washing machines each month for the first six months at £245 each, and then 30 washing machines each month at £255 each, for the last six months. Bought 20 cookers each month for the first six months at £560 each and then 25 cookers each month for the last six months at £575 each.
Employed one sales assistant at £16,500
Employed one fitter at £24,700
Advertised in the local press at a cost of £90 per month
Paid rent at £2,500 per quarter
Paid insurance of £950
Paid a part-time bookkeeper £150 per month to keep the accounts
Had vehicle expenses of £9800
Printed advertising leaflets at a cost of £500
Sold 30 washing machines each month at £385 each for the first six months and then 31 washing machines each month at £415 each for the last six months. Sold 20 cookers each month at £780 for the first six months and then 22 cookers each month at £820 each for the last six months.
Required:
(a) Calculate the values of the opening stock, Purchases, Sales and Closing stock.
(b) M Trading and Profit and Loss account for the year ended 31st December 2019.
(c) Calculate the gross profit margin and the net profit as a percentage of sales.