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

Analysis and communication of accounting information — practice question

A company’s financial statements for the year ending 31 December presented these figures: issued share capital: $150000$ non-current liabilities: $280000$ reserves including retained earnings: $250000$ The company recorded a profit from operations of $160000$ and a profit for the year of $120000$. What was the return on capital employed for the company?

  • A23.5\%
  • B30.0\%
  • C37.2\%
  • D40.0\%

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