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

Analysis and communication of accounting information — practice question

The information below has been taken from the financial statements of a limited company. Statement of profit or loss for the year: operating profit: $\$59800$ finance costs: $\$12000$ profit for the year: $\$47800$ Statement of financial position at year end: equity: ordinary share capital: $\$700000$ retained earnings: $\$72500$ total equity: $\$772500$ non-current liabilities: $10\%$ debentures: $\$120000$ What is the return on capital employed?

  • A5.36%
  • B6.19%
  • C6.70%
  • D7.74%

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