From the following informations, calculate Return on Investment (or Return on Capital Employed):

Particulars

₹

Share Capital

5,00,000

Reserves and Surplus 2,50,000

Net Fixed Assets 22,50,000

Non-current Trade Investments 2,50,000

Current Assets 11,00,000

10% Long-term Borrowings 20,00,000

Current Liabilities 8,50,000

Long-term Provision

NIL

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Solution

Net Profit before tax = 6,00,000
Net Profit before interest, tax and dividend = Net Profit before tax + Interest on long-term borrowings
= 6,00,000 + 10% of 20,00,000 = 6,00,000 + 2,00,000 = 8,00,000

Capital Employed = Share Capital + Reserves and Surplus + Long-term borrowings
= 5,00,000 + 2,50,000 + 20,00,000 = 27,50,000

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Similar questions

Q. From the following information, calculate Total Assets to Debt Ratio:

	₹		₹
Fixed Assets (Gross)	6,00,000	Accumulated Depreciation	1,00,000
Non-current Investments	10,000	Long-term Loans and Advances	40,000
Current Assets	2,50,000	Current Liabilities	2,00,000
Long-term Borrowings	3,00,000	Long-term Provisions	1,00,000

Q. Calculate Current Ratio from the following information:


Particulars	₹	Particulars	₹
Total Assets	5,00,000	Non-current Liabilities	1,30,000
Fixed Tangible Assets	2,50,000	Non-current Investments	1,50,000
Shareholders' Funds	3,20,000

From the following information, prepare Comparative Balance Sheets of X Ltd.:

$\begin{matrix} Particulars & 31.03.2017 & 31.03.2016 Rs. & Rs. Reserve and Surplus & 12, 00, 000 & 6, 00, 000 Share Capital & 10, 00, 000 & 10, 00, 000 Trade Payables & 12, 70, 000 & 9, 00, 000 Land and Buildings & 16, 00, 000 & 15, 00, 000 Plant and Machinery & 6, 30, 000 & 5,00,000 Goodwill & - & 1, 00, 000 Investments & 1, 20, 000 & 1, 00, 000 Current Assets & 15, 20, 000 & 8,00,000 Long term Borrowings & 4, 00, 000 & 5, 00, 000 \end{matrix}$

Q. Calculate Debt to Equity Ratio from the following information:

	₹		₹
Fixed Assets (Gross)	8,40,000	Current Assets	3,50,000
Accumulated Depreciation	1,40,000	Current Liabilities	2,80,000
Non-current Investments	14,000	10% Long-term Borrowings	4,20,000
Long-term Loans and Advances	56,000	Long-term Provisions	1,40,000

Following is the Balance Sheet of Future Retail Mart and from the additional information as on 31-03-2017. Prepare Cash Flow Statement.

$\begin{matrix} Particulars & Note & 31 - 03 - 2017 & 31 - 03 - 2016 No. & (Rs) & (Rs) I. EQUITY AND LIABILITIES (1) Shareholder's Funds: (a) Share Capital & 5, 50, 000 & 4, 75, 000 (b) Reserves and Surplus & 1 & 1, 75, 000 & 50, 000 (2) Non-current Liabilities: Long-term Borrowings & 2 & 2, 25, 000 & 50, 000 (3) Current Liabilities: (a) Short-term Borrowings & 3 & 75, 000 & 37, 500 (b) Short-term Provisions & 4 & 1, 00, 000 & 62, 500 Total & 11, 25, 000 & 6, 75, 000 II. ASSETS (1) Non-current Assets: (i) Fixed Assets (a) Tangible & 5 & 8, 07, 500 & 4, 52, 500 (b) Intangible & 6 & 50, 000 & 75, 000 (ii) Non-current Investment & 1, 50, 000 & 50, 000 (2) Current Assets: (a) Current Investments & 20, 000 & 35, 000 (b) Inventories & 7 & 61, 000 & 36, 000 (c) Cash and Cash Equivalents & 36, 500 & 26, 500 Total & 11, 25, 000 & 6, 75, 000 \end{matrix}$

Notes to Accounts :

$\begin{matrix} Note & Particulars & 31 - 03 - 2017 & 31 - 03 - 2016 No. & (Rs) & (Rs) 1 & Reserves and Surplus: Balance in Profit and Loss & 1, 25, 000 & 50, 000 General Reserve & 50, 000 & - 2 & Long-term Borrowings : 10 % Debentures & 2, 25, 000 & 50, 000 3 & Short-term Borrowings : Bank Overdraft & 75, 000 & 37, 500 4 & Short-term Provisions : Proposed Dividend & 1, 00, 000 & 62, 500 5 & Tangible Assets: Machinery & 9, 12, 500 & 5, 22, 500 (-) Accumulated Depreciation & (1, 05, 000) & (70, 000) 8, 07, 500 & 4, 52, 500 6 & Intangible Assets: Goodwill & 50, 000 & 75, 000 7 & Inventories: Stock in Trade & 61, 000 & 36, 000 \end{matrix}$

Additional Information:

(i) During the year a piece of Machinery Costing Rs 80,000 on which accumulated depreciation was Rs 55,000 was sold for Rs 15,000.

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Particulars		₹
Share Capital		5,00,000
Reserves and Surplus		2,50,000
Net Fixed Assets		22,50,000
Non-current Trade Investments		2,50,000
Current Assets		11,00,000
10% Long-term Borrowings		20,00,000
Current Liabilities		8,50,000
Long-term Provision		NIL