the financial statement of a company for the year ending 31st march,2011:
cash 160000
sundry debtors 400000
short term investment 320000
stock 2160000
prepaid expenses 10000
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total current assets 3050000
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current liabilities 1000000
10% debentures 1600000
equity capital 2000000
retained earnings 800000
statement of profit for 31st march,2011:
sales(20%cash sales) 4000000
(-)cost of goods sold (2800000)
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PBIT 1200000
(-)interest (160000)
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PBT 1040000
(-) tax @ 30 (312000)
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PAT 728000
calculate return on capital employed ?in answer capital employed = 44000000 & my question how is it possible?please tell me the calculation of capital employed details.
CAclubindia
