FRBPP Greenwood - Analysing statements - ROCE calculation and Capital Employed

I generally understand the ratio's and analysis questions however, am still having hiccups when trying to understand the capital employed required within the ratio's calculations. In particular, I can't figure out how to arrive at the ROCE figures for the question detailed below. I have searched for this one and found someone with the same question as me who clearly either figured it out or was too lazy to give you the question in full (they just gave the question name without details!). (Apologies - it's a long informative one but I've explained my misunderstanding and problems at the end! Thank you in advance!) --------------------------------------------------------------------------------------------- 258 Greenwood (from BPP Practice and revision kit 2018) Greenwood is a public listed company. On 31 March 20X7 Greenwood sold its 80%-owned subsidiary – Deadwood – for $6 million. The directors have been advised that the disposal qualifies as a discontinued operation and it has been accounted for accordingly. The disposal proceeds were not collected until after the year end. Extracts from Greenwood's financial statements are set out below. CONSOLIDATED STATEMENTS OF PROFIT OR LOSS FOR THE YEAR ENDED 31 MARCH 20X7 20X6 $'000 $'000 Revenue 27,500 21,200 Cost of sales (19,500) (15,000) Gross profit 8,000 6,200 Operating expenses (2,900) (2,450) 5,100 3,750 Finance costs (600) (250) Profit before taxation 4,500 3,500 Income tax expense (1,000) (800) Profit for the year from continuing operations 3,500 2,700 Profit/(loss) from discontinued operations (1,500) 320 Profit for the year 2,000 3,020 Profit attributable to: Owners of Greenwood 2,300 2,956 Non-controlling interest (300) 64 2,000 3,020 Analysis of discontinued operation: Revenue 7,500 9,000 Cost of sales (8,500) (8,000) Gross profit/(loss) (1,000) 1,000 Operating expenses (400) (550) Profit/(loss) before tax (1,400) 450 Tax (expense)/relief 300 (130) (1,100) 320 Loss on measurement to FV of disposal group (500) – Tax relief on disposal group 100 – Profit/(loss) from discontinued operations (1,500) 320 STATEMENTS OF FINANCIAL POSITION AS AT 31 MARCH 20X7 20X6 $'000 $'000 $'000 $'000 Property, plant and equipment 17,500 17,600 Goodwill 1,500 Current assets Inventory 1,500 1,350 Trade receivables 2,000 2,300 Due on sale of subsidiary 6,000 nil Bank nil 9,500 50 3,700 Total assets 27,000 22,800 Equity and liabilities Equity shares of $1 each 10,000 10,000 Retained earnings 4,500 2,750 14,500 12,750 Non-controlling interest 1,250 14,000 Non-current liabilities 5% loan notes 8,000 5,000 Current liabilities Bank overdraft 1,150 nil Trade payables 2,400 2,800 Current tax payable 950 4,500 1,000 3,800 Total equity and liabilities 27,000 22,800 Note. The carrying amount of the assets of Deadwood at 31 March 20X6 was $6.25 million. Greenwood measures non-controlling interest at share of net assets. --------------------------------------------------------------------------------------------- My understanding is: ROCE = PBIT/Capital employed, where capital employed = total assets - current liabilities = equity + non-current liabilities Trying either of these directly isn't making any sense in my head and I'm feeling pretty lost with it! For X6, my attempts at calculations were.... assets = 22800 current liabilities = 3800 capital employed = 19000 or equity = 12750 non-current liabilities = 5000 capital employed = 17750 Neither are correct obviously so, I went to the answer (in attempt to understand)... the calculation given is: ROCE 20X6 = (3,750/(12,750 + 5,000 – 6,250)) Are you able to explain where the 6250 comes from please? The answer for the ROCE 20X7 is also confusing me... ROCE 20X7 = (4,500 + 400*)/(14,500 + 8,000 - 6,000) I am not sure why we add the 400 to the PBIT? The notes say it relates to interest from loan notes but I'm not really getting my head around why the PBIT isn't 4500 +600 where 600 is the finance costs stated in the SPLOCI. (I at least understand that we are taking the 6000 off from equity and NC-L's because it's a one-off and would obscure the analysis!) I really appreciate any help you can give... especially with the exams so close now! Thank you!!!! :)