Extracts from the financial statements of Persimmon are as follows:Statement of profit or lossStatement of financial position$'000230000.$2,000Operating profitFinance costsOrdinary sharesRevaluation surplusRetained earnings(15)215(15)200300Profit before tax1,2003,5001,000Income taxProfit for the year10% loan notesCurrent liabilities100Total equity and liabilities4,600What is the return on capital employed?

Formula for Return on Capital employed = {Profit before interest and tax / Capital Employed} × 100

Extracts from the financial statements of Persimmon are as follows: Statement of profit or loss Statement of financial position $'000 000.$ 2,000 Operating profit Finance costs 230 (15) 215 Ordinary shares Revaluation surplus Retained earnings 300 Profit before tax 1,200 3,500 1,000 Income tax (15) 200 Profit for the year 10% loan notes Current liabilities 100 Total equity and liabilities 4,600 What is the return on capital employed?

Extracts from the financial statements of Persimmon are as follows: Statement of profit or loss Statement of financial position $'000 000.$ 2,000 Operating profit Finance costs 230 (15) 215 Ordinary shares Revaluation surplus Retained earnings 300 Profit before tax 1,200 3,500 1,000 Income tax (15) 200 Profit for the year 10% loan notes Current liabilities 100 Total equity and liabilities 4,600 What is the return on capital employed?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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