Question - The following figures relate to a trading year for trader Amelia.
£
Annual sales 65,000
Annual purchases 42,400
Sales returns 2,950
Purchases returns 2,250
Money owed by debtors at year end 2,890
Money owed to creditors at year end 2,310
Stock at start of year 2,990
Stock at end of year 2,100
Postage and telephone 1,700
Heating and lighting 5,310
Rent 11,605
Bank at year end 1,070
Cash at year end 177
(a) Calculate the ratios for:
(i) overhead expenses to turnover
(ii) end of year working capital.