net profit after interest and tax of m limited was rupees 1,00,000 its current assets were 4,00,000 and current liabilities was 2,00,000 tax rate was 50% its total assets were 10,00,000 and 10% long term that was 4,00,000 calculate return on investment
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Explanation:
Total Assets = Current Assets + Fixed Assets =400000+ 600000.=1000000.
Capital Employed= Total Assets- Current liability =1000000-200000=800000.
Return on Investment = Net Profit after Interest and tax/ Cap Employed×100 100000/800000 ×100 =12.5%.
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