Question: You are presented with the following information relating to three companies: Required: Calculate the following accounting ratios: (a) Return on capital employed (b) Capitalgearing. Profit

You are presented with the following information relating to three companies:

Required:
Calculate the following accounting ratios:
(a) Return on capital employed
(b) Capitalgearing.

Profit and loss accounts for the year to 31 March 2009 Mark Limited 5000 64 Luke Limited 5000 Limited 5000 Profit before tax Balance sheet (extracts) at 31 March 2009 Mark Limited 000 Luke Limited Limited Capital and reserves Ordinary share capital of 1 each cumulative 15% preference shares of 1 each Share premium account Profit and loss account Shareholders' funds Loans 10% debentures 100 20 10 20 200 290 150 250 327 100 250 327 390

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