10 Do you think Elton should be pleased with the financial performance of his business? Justify your answer......[6]
Posted: Thu Feb 05, 2026 4:46 pm
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.
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
- ELTON.JPG (27.06 KiB) Viewed 212 times
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