1.

Aurelie is a sole trader. She started her small hotel a year ago using government support.

Aurelie knew it would be important to build good customer relationships. Aurelie wants to analyse her financial statements using ratio analysis. An extract is shown in the below table.

She is worried about how the Government’s plan to introduce a new tourist tax of $1 per tourist per night might affect her business.

Extract of Aurelie’s Statement of Profit or Loss for 2020 ($)
Revenue	5 600
Cost of sales	1 800
Gross profit	X
Expenses	2 400
Profit	Y