Analysis of the Balance Sheet for the last 2 years.

Assets	2018	2017	%
Noun-current Asset: Property , plant and equipment	995,510	1,011,694	(1.59969)
Available for sale investments	176,495	197,069	(10.43999)
Total non non current assets	1,172,005	1,208,763	(3.04096)
Current Asset:
Investment	16,902	16,902	0
Trade receivables	_	_	_
Amounts due from related parties	442	442	0
Cash at bank and on hand	_	_	_
Total current asset	17,334	17,334	0
Total assets	1,189,349	1,226,107	(2.997943)
Equity and liabilities
Shareholders equity:
Share capital	1,000,000	1,000,000	0
Legal reserve	1,191	1,191	0
Accumulated losses	(3,357,038)	(3,124,801)	(7.432057)
Fair value reserve	105,969	126,543	(16.25850)
Total Shareholders equity	(2,249,878)	(1,997,076)	12.658606
Current Liability :
Borrowings	3,135,310	2,904,036	7.96388
trade and other payables	104,609	108,389	(3.48743)
Amounts due to related parties	199,204	210,749	(5.47808)
Total current liabilities	3,439,123	3,223,174	6.699793
Total equity and liabilities	1,189,245	1,226,107	(6386200)
NET ASSETS VALUE PER SHARE	(2.250)	(1.997)	12.66900

Income Statement

	2018	2017
Income
Other operating income	54,052	50,262
EXPENSES:
General and administrative	(47,019)
expenses		(94,088)
Finance costs	(239,270)	(216,326)
Total expenses	(286,289)	((260,152))
Loss before taxation	(232,237)	(260,152)
Income tax expense
Loss for the year
Other comprehensive income:
Change in fair value of available for sale Investments	(20,574)	15,294
TOTAL COMPREHENSIVE LOSS FOR THE YEAR	(252,811)	(244,858)
LOSS PER SHARE	(0/232)	(0/260)

Calculate the following data:

1. ROCE Analysis

ROCE computation = net income preferred dividends / average common shareholders

Relating ROA to ROCE = return to creditors + return to proffered stockholder + ROCE

Disaggregation of ROCE =

ROCE = ROA x Adjusted Leverage

net income / A.common shareholders

net income / A.total assets x net income to common stock / net income x average total assets / A.Shareholders equity

CEL (Common earnings leverage) = Net income - Preferred dividends / Net income + ( 1 - ) x Interest expense + MI in earnings

CSL (Capital structure leverage) = Average total assets / Average common equity