On December 1, 2018, Mario started his business with a borrowed capital amounting to P 40,000 at a monthly interest rate of 1%. During the month, he spent 5,000 for operating expenses. The remaining balance of the capital was used to buy inventories for resale. At the end of the year, inventory amounts to P 10,000 including the mark up of 60%. How much is the return on capital?
On December 1, 2018, Mario started his business with a borrowed capital amounting to P 40,000 at a monthly interest rate of 1%. During the month, he spent 5,000 for operating expenses. The remaining balance of the capital was used to buy inventories for resale. At the end of the year, inventory amounts to P 10,000 including the mark up of 60%. How much is the return on capital?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On December 1, 2018, Mario started his business with a borrowed capital amounting to P 40,000 at a monthly interest rate of 1%. During the month, he spent 5,000 for operating expenses. The remaining balance of the capital was used to buy inventories for resale. At the end of the year, inventory amounts to P 10,000 including the mark up of 60%.
How much is the return on capital?
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