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

Analysis and communication of accounting information — practice question

A company made a profit after interest of $25\,000$. The interest charged came to $5000$. The company’s statement of financial position included the following figures. Ordinary share capital $100\,000$ Non-redeemable preference shares $50\,000$ Reserves $75\,000$ Debentures (2021-2023) $15\,000$ Bank overdraft $10\,000$ What was the return on capital employed?

  • A$10.00\%$
  • B$10.42\%$
  • C$12.00\%$
  • D$12.50\%$

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