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

Analysis and communication of accounting information — practice question

The following data for a limited company as at 31 December 2021 are available: Ordinary share capital: $300\,000. Retained earnings: $110\,000. $8\%$ debenture: $100\,000. Retained earnings on 1 January 2021 amounted to $82\,000. An interim dividend of $45\,000 was paid on 1 May 2021. Calculate the return on capital employed for the year ended 31 December 2021.

  • A$6.83\%$
  • B$7.06\%$
  • C$14.31\%$
  • D$15.88\%$

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