P5, J-2015,Q1(iv)

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August 19, 2015 at 1:50 am #267699
anirbanghosh
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For the evaluation of new factory in the performance dashboard, the solution provided by ACCA shows “Current capital employed” as $170.3m. I am not able to figure out how this was computed. Can someone help?
August 19, 2015 at 12:32 pm #267760
Ken Garrett
Keymaster
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ROCE = Operating Profit/Capital employed

So,

Capital employed = Operating profit/ROCE = 71/.417 = 170.3
August 21, 2015 at 2:16 am #267914
anirbanghosh
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Thank you very much! Now that I see how it can be computed, it seems rather simple, and also explains why there was no workings provided for this.
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