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Assets 2002 Liabilities+S.H.E 2002

Accounts Rs.
Cash Rs.
payable 10
5

Accounts 5
10 Notes payable
Receivable

Inventory 15 Accrued wages 3

Net fixed 2
40 Accrued tax
assets

Long term debt 20

Common stock 10

Retained earning 20

Total 70 Total 70

Prepare a statement of cash flows for 2002 using indirect method when net income is Rs.15.

Return on Investment:
Return on capital Employed = Net Income / Capital employed

15 /50= 0.3

Return on assets = Net Income / assets = 15/70 === 0.25

Return on equity = Net Income / equity = 15/10 = 1.5

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