I calculated capital employed by adding the share capital and reserves with long term loans. Then, I used it in the calculation of roce and asset turnover However in the answer the capital employed is calculated in another way.
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Need help on page 169 no 25.6 bpp
6y ago#1This is a dreadful mistake in the BPP Revision Kit.
Capital employed is share capital and reserves + long-term loans, and this will always be equal to total assets less current liabilities.
The figures given in the question are not possible, because the two totals are not equal. That can never possibly happen either in real-life or in exams,
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