Elton is a sole trader. He sells specialist clothing and equipment for sports, including baseball and hockey. It is a niche market. Elton started his business 5 years ago and it has remained small. A wide range of inventory is important. Elton has been looking at the financial performance of his business. The profit margin for 2018 was 35%. An extract of the accounts is shown in the table below.
- ELTON.JPG (27.06 KiB) Viewed 203 times
10 Do you think Elton should be pleased with the financial performance of his business? Justify your answer
using appropriate ratios. [6]
Possible KN Points:
• Gross profit margin has improved
• Profit margin has decreased
• Gross profit increased
• Profit decreased
•Gross profit margin has improved
• However Profit margin has decreased