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

Analysis and communication of accounting information — practice question

A limited company recorded a return on capital employed of $5\%$ in the previous financial year. The extra information below is available. equity: $\$1\,000\,000$ $10\%$ debentures: $\$200\,000$ finance costs: $\$20\,000$ taxation: $\$10\,000$ What was the company's profit for the year?

  • A$\$20\,000$
  • B$\$30\,000$
  • C$\$80\,000$
  • D$\$90\,000$

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