Table 1 shows the Balance Sheet for Ulwar, a public limited company. Table 1: Balance Sheet Ulwar as at 30 September 2009 $m Fixed assets 80 Current assets 20 Current liabilities 12 Net current assets 8 Net assets 88 Financed by Shareholders funds 38 Long term liabilities 50 Capital employed 88 In 2008 Ulwar made a profit of $8m and in 2009 the company made a profit of $10m. In 2008 the return on capital employed by the business was 10%. The management of Ulwar is thinking of raising extra capital by issuing more shares.

1. (a)Identify an example of: A current liability A long term liability[2]
2. (b)Calculate the return on capital employed (ROCE) of Ulwar in 2009.[2]
3. (c)Explain why the amount of long term liabilities on Ulwar's Balance Sheet might be of concern to its bank.[4]
4. (d)Identify and explain three factors the company should consider before making this decision.[6]
5. (e)Referring to the measures of business success, such as ROCE, do you think Ulwar had a successful year in 2009? Justify your answer.[6]