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

Analysis and communication of accounting information — practice question

The following data relate to a company: ordinary share capital $50000$, retained earnings at the end of the year $11000$, $8\%$ debentures $(2020-2022)$ $15000$, bank overdraft $8000$, profit from operations $17700$, profit for the year $16500$. Calculate the return on capital employed.

  • A$21.07\%$
  • B$21.71\%$
  • C$23.29\%$
  • D$27.05\%$

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