Day: February 5, 2018

Wood Pigeon Ltd has provided a list of its assets and liabilities as at 31 December 2017 as follows:

• Long-Term Assets £400k
• Inventory £185k
• Accounts Receivables £140k
• Bank Account £110k
• Cash £50K
• Accounts Payable £165k
• Long-term Bank Loan £800k
• Reserves £250k
• Share Capital £200k
• Revenue £4,800k
• Cost-of-Sales £3,400k
• Net Profit Margin £600k
• Purchases £1,800k

What is Wood Pigeon’s Expenses in relation to revenue Percentage?

Select ONE answer:

1. 16.67
2. 29.17
3. 48.00
4. 41.18
5. 12.50

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This is multiple choice question is suitable for Accounting KS5 classes.

The answer is 1 – £4,800k – £3,400k = £1,400k – £600k = £800k / £4,800k * 100 = 16.67%

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