Accounting 9706 · AS & A Level · Analysis and communication of accounting information

Analysis and communication of accounting information — practice question

The table sets out year-end figures for a company. Income statement figures: Operating profit: $14000$ Finance costs incurred: $(1500)$ Loss arising on disposal of non-current asset: $(2500)$ Profit for the year: $10000$ Statement of financial position details: $5\%$ debenture 2020: $30000$ Ordinary share capital recorded at: $70000$ Share premium account: $15000$ Retained earnings: $35000$ Calculate the return on capital employed (ROCE).

  • A$6.7\%$
  • B$8.3\%$
  • C$9.3\%$
  • D$11.7\%$

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