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

Analysis and communication of accounting information — practice question

By 31 December, the capital employed of a company comprised ordinary shares of $1$ each and retained earnings of $50000$. The information below applies to the year ended on that date. Profit from operations: $47000$ Finance costs: $3000$ Profit for the year: $44000$ Return on capital employed was $10\%$. How many ordinary shares had been issued?

  • A$390000$
  • B$420000$
  • C$440000$
  • D$470000$

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