Answer- Calculate Rate on Return on Capital Employed:

EBIT Capital employed X 100 9,00,000 25,80,000 X 100 34.88 CE Eq Sh. Cap. Pref. Sh. Cap. Reserves Surplus Debenture Long Term Loan Fictitious Assets CE 10,00,000 4,00,000 7,00,000 5,00,000 20,000 25,80,000

Question

Calculate Rate on Return on Capital

Employed: Refer the following summarized Balance Sheet & P&L of AB Ltd. as on 31 ‐ 3 ‐ 2022. Summarized Profit and Loss Account is as under for the year ending on 31 ‐ 3 ‐ '04: Rs. Sales (25% Cash sales) 80,00,000 Less: Cost of goods sold 56,00,000 Gross Profit 24,00,000 Net profit (Before interest and tax 50%) 9,00,000 Calculate the following ratios:

A 34.88%

B 30.5%

C 36.65%

D 33.50%

E 41%

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