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32

 Profit and loss account for the first six months 

Sales revenue                                                                                £10,800 

Expenses 

Rent                                      £15,000 

Other expenses                  £41,510                                             £56,510 

Loss                                                                                                  (£45,710) 

Can you afford to carry on with the business? 

Work out whether you will be able to repay the bank loan and what your ROCE per year will be if you keep making £5,000 sales per month. 

33. Yes, I think so 

33. No, it is unprofitable