(ii) Statement of Profit or Loss and Other Comprehensive Income (Extract)

2019 2020

m Operating Profit 1550 960

interest Payable (40) (20)

Profit before tax 1,510 940

Statement of Financial Position (Extract)

10% Debenture 400 200

Equity & Reserves 3,000 1,500

Required:

What is the return on capital employed for both years?

2019 2020

A 51.6% 64%

B 45.6% 56.5%

C 44.4% 55.3%

D 50.3% 62.7%