QUESTION 5

The following, is a balance sheet of Northern Fixtures Ltd.

Liabilities	P	Assets	P
Share Capital(P10) Reserves 8% Debentures Sundry Creditors	8,00,000 2,00,000 2,00,000 1,60,000	Non-current Assets Current Assets	10,00,000 3,60,000
	13,60,000		13,60,000

Net Operating Profit before tax is P 2,80,000. Assume tax rate at 50%. Dividend declared amounts to P1,20,000.

Required:

a. Calculate the following:

i. Return on Total Resources. (5 marks)

ii. Return on Capital Employed. (5 marks)

iii. Return on Shareholders Fund. (5 marks)