Question
What is the value of Return on Capital Employed if the Operating Profit is $ 132,500: ABC Limited Statement of Financial Position as at Dec
What is the value of Return on Capital Employed if the Operating Profit is $ 132,500: ABC Limited Statement of Financial Position as at Dec 31, 2022 and Dec 31, 2021 2022 2021 Non - Current Assets Plant and Equipment $ 1,900,000.00 $ 2,175,000.00 Building and Land $ 950,000.00 $ 1,000,000.00 Total Non Current Assets $ 2,850,000.00 $ 3,175,000.00 Current Assets Stock $ 550,000.00 $ 250,000.00 Accounts Receivable $ 800,000.00 $ 740,000.00 Cash at Bank $ 250,000.00 $ 200,000.00 $ 1,600,000.00 $ 1,190,000.00 TOTAL ASSETS $ 4,450,000.00 $ 4,365,000.00 Current Liabilities Trade Creditors $
The following is the balance sheet for ABC Limited:
| ABC Limited | ||
| Statement of Financial Position as at Dec 31, 2022 and Dec 31, 2021 | ||
| 2022 | 2021 | |
| Non - Current Assets | ||
| Plant and Equipment | $ 1,900,000.00 | $ 2,175,000.00 |
| Building and Land | $ 950,000.00 | $ 1,000,000.00 |
| Total Non Current Assets | $ 2,850,000.00 | $ 3,175,000.00 |
| Current Assets | ||
| Stock | $ 550,000.00 | $ 250,000.00 |
| Accounts Receivable | $ 800,000.00 | $ 740,000.00 |
| Cash at Bank | $ 250,000.00 | $ 200,000.00 |
| $ 1,600,000.00 | $ 1,190,000.00 | |
| TOTAL ASSETS | $ 4,450,000.00 | $ 4,365,000.00 |
| Current Liabilities | ||
| Trade Creditors | $ 600,000.00 | $ 540,000.00 |
| Total Current Liabilities | $ 600,000.00 | $ 540,000.00 |
| Long Term Liabilities | ||
| Long Term Loan | $ 1,100,000.00 | $ 1,200,000.00 |
| Total Long Term Liabilities | $ 1,100,000.00 | $ 1,200,000.00 |
| Total Liabilities | $ 1,700,000.00 | $ 1,740,000.00 |
| Equity | ||
| Share Capital | $ 1,000,000.00 | $ 1,000,000.00 |
| Accumulated Profits | $ 1,750,000.00 | $ 1,625,000.00 |
| Total Equity | $ 2,750,000.00 | $ 2,625,000.00 |
| Total Liabilities and Equity | $ 4,450,000.00 | $ 4,365,000.00 |
What is the value of average capital employed?
Group of answer choices
$3,837,500
4,407,500
4,450,000
ABC Limited's current ratio and Quick Ratio has the following values:
| 2022 | 2021 | |
| Current Ratio | 2.67 | 2.20 |
| Quick Ratio | 1.75 | 1.74 |
What is the formula for Current Ratio?
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