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

Analysis and communication of accounting information — practice question

The following figures are given for G Limited for the year ended 31 December 2019: share capital $275\,000$, long-term bank loan $180\,000$, current liabilities $120\,000$, profit from operations $244\,000$, bank loan interest $34\,000$, retained earnings including profit for the year $400\,000$. What was the return on capital employed?

  • A$21.54\%$
  • B$24.56\%$
  • C$25.03\%$
  • D$28.54\%$

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