Ekua trades in household furnishings and has supplied the figures below.
At 30 April 2022:
Inventory $14650
Trade receivables $12700
Bank overdraft $5375
Trade payables $7125
For the year to 30 April 2022:
Revenue $112300
Purchases $72250
Expenses $19820
All sales and purchases are on credit.
Inventory at 1 May 2021 was valued at $12800.
(a)[11]
Fill in the tables below.
(b)[5]
Advise Ekua on whether she should buy the extra inventory. Support your answer with two advantages and two disadvantages.
(c)[2]
Explain the meaning of the principle of consistency and why it matters in the preparation of financial statements.
(d)[2]
State two non-financial factors that may influence Ekua’s trading results.
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