Scribd
Upload
23 views2 pages

Return On Investment:: (10) Assets 2002 Liabilities+S.H.E 2002

The document provides a balance sheet for 2002 showing assets of Rs. 70 including cash of Rs. 5, accounts receivable of Rs. 10, inventory of Rs. 15, and net fixed assets of Rs. 40. Liabilities and shareholders' equity total Rs. 70 including accounts payable of Rs. 10, notes payable of Rs. 5, accrued wages of Rs. 3, accrued tax of Rs. 2, long term debt of Rs. 20, common stock of Rs. 10, and retained earnings of Rs. 20. The net income for 2002 was Rs. 15. Calculations show a return on capital employed of 0.3, return on assets of 0.25, and return on equity

Uploaded by

Waseem Chaudhary
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOC, PDF, TXT or read online on Scribd
23 views2 pages

Return On Investment:: (10) Assets 2002 Liabilities+S.H.E 2002

The document provides a balance sheet for 2002 showing assets of Rs. 70 including cash of Rs. 5, accounts receivable of Rs. 10, inventory of Rs. 15, and net fixed assets of Rs. 40. Liabilities and shareholders' equity total Rs. 70 including accounts payable of Rs. 10, notes payable of Rs. 5, accrued wages of Rs. 3, accrued tax of Rs. 2, long term debt of Rs. 20, common stock of Rs. 10, and retained earnings of Rs. 20. The net income for 2002 was Rs. 15. Calculations show a return on capital employed of 0.3, return on assets of 0.25, and return on equity

Uploaded by

Waseem Chaudhary
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOC, PDF, TXT or read online on Scribd
You are on page 1/ 2

(10)

Assets 2002 Liabilities+S.H.E 2002

Accounts Rs.
Cash Rs.
payable 10
5

Accounts 5
10 Notes payable
Receivable

Inventory 15 Accrued wages 3

Net fixed 2
40 Accrued tax
assets

Long term debt 20

Common stock 10

Retained earning 20

Total 70 Total 70

Prepare a statement of cash flows for 2002 using indirect method when net income is Rs.15.

Return on Investment:
Return on capital Employed = Net Income / Capital employed

15 /50= 0.3

Return on assets = Net Income / assets = 15/70 === 0.25

Return on equity = Net Income / equity = 15/10 = 1.5

1
2

You might also like