12.6 You are presented with the following information relating to three companies:

Required:
Calculate the following accounting ratios:
1 return on capital employed; and 2 capital gearing.

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Profit and loss accounts for the year to 31 March 2006 Mark Limited Luke Limited John Limited 000 000 000 Profit before tax 64 22 55 Balance sheet (extracts) at 31 March 2006 Mark Luke John Limited Limited Limited 000 000 000 Capital and reserves Ordinary share capital of 1 each 100 177 60 Cumulative 15% preference shares of 1 each 20 10 Share premium account 70 20 Profit and loss account 150 Shareholders' funds 250 Loans 10% debentures 250 ' 200 290 100 390