# Question 52 Chapter 7 -Unimax Publication Class 12 Part 2 – 2021

Question No -52 Chapter no - 7 Unimax Class - 12 Part -II

Question 52 Chapter 7 – Unimax Publication Class 12 Part 2 – 2021

52. From the following calculate return on investment.

 Share capital 1,00,000 Reserve and surplus 50,000 Net fixed assets 4,50,000 Non-current trade investments 50,000 Current assets 2,20,000 12% long term borrowing 4,00,000 Current liabilities 1,70,000 Net profit before tax 1,20,000

## The solution of Question 52 Chapter 7 – Unimax Publication Class 12 Part 2-2021 : –

 Return on investment or return on capital employed = Net profit before interest and tax x 100 Capital Employed
 Net profit before tax 1,20,000 Add: 12% on 4,00,000 48,000 Net profit before int & tax 1,68,000
 Capital employed = share capital + reserve & surpluses + 12% long term borrowings = 1,00,000 + 50,000 + 4,00,000 + = 5,50,000
 Return on investment or return on capital employed = 1,68,000 x 100 = 30.54% 5,50,000

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