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

Analysis and communication of accounting information — practice question

The information below has been taken from a business's financial statements. Income statement: Profit from operations: $48\,000$ Debenture interest: $(4\,550)$ Loss on disposal of non-current asset: $(3\,250)$ Profit for the year: $40\,200$ Statement of financial position: $7\%$ debenture: $65\,000$ Ordinary share capital: $95\,000$ Share premium: $7\,500$ Retained earnings: $35\,000$ Calculate the return on capital employed (ROCE).

  • A$19.9\%$
  • B$23.7\%$
  • C$29.2\%$
  • D$34.9\%$

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