From Cambridge Exercise 10.12:
Assess the sales mark-up applied by Maranelli Sports for the six months ended 31 Dec 2015.
How do i answer this? :x
Also, 'Yearly repayments of 12000 are made on Mortgage-xx, interest 6% p.a., payable on 28 Feb and 31 Aug each year' : Is this still a current liability of 12000?
For your first question, if there was a considerable profit in the reporting period, I would say something like "The sales mark-up applied by the business for the six months ended 31 December 2015 is adequate as Gross Profit is able to cover all other expenses, whilst also yielding a significant profit". You could also mention the timeframe in which the profit was earned, i.e. if there was considerable profit in only a 6 month period
For your second question, the yearly repayments are still considered to be a current liability of $12000, however be careful of the remaining portion that is non-current, because this is usually the part where people lose marks