a.Calculate for the year ended 31 March 2020 and 2019 the following question.

Return on capital employed (ROCE)

(profit before interest and tax/year-end total assets less current liabilities)

Question 1 Shown below are the financial statements of Metrod Berhad for the most recent two years. Income statement for the year ended 31 March: 2020 2019 RM'000 RM'000 Revenue 150,000 110,000 Cost of sales (117,000) (85 800) Gross profit 33,000 24,200 Distribution costs (6,000) (5,000) Administrative expenses (9,000) (9,200) Finance costs (1,750) (500) Profit before tax 16,250 9,500 Income tax expense (5,750) (3.000) Profit for the year 10.500 6.500 Statement of financial position as at 31 March: 2020 2019 RM'000 RM'000 Assets Non-current assets Property and shop fittings 118,000 85,000 Goodwill 30,000 148,000 85,000 Current assets Inventory 15,500 12,000 Trade receivables 11,000 8,000 Bank 500 5,000 27.000 25,000 Total assets 175.000 110.000 Equity and liabilities Equity Equity shares of RM1 each 80,000 80,000 Retained earnings 15,000 10.000 95,000 90,000 Non-current liabilities 10% loan notes 50,000 5,000 Current liabilities Trade payables 21,000 13,000 Current tax payable 4,000 2.000 25,000 15,000 Total equity and liabilities 175.000 110,000