Table 1 shows the Balance Sheet for company D at the end of 2010 and 2011. [Table 1: Company D Balance Sheet [$m] 2010 2011 Fixed Assets 500 600 Current Assets 600 650 Current Liabilities 450 550 Net Assets 650 700 Long-term Liabilities 350 350 Shareholders' Funds 300 350 Capital Employed 650 700] The accounts also showed that the net profit of company D was $80m in 2010 and $120m in 2011.

1. (a)What is meant by 'capital employed'?[2]
2. (b)Calculate company D's current ratio in 2011.[2]
3. (c)The directors are planning further expansion of the company. Identify and explain two benefits to company D of raising finance by selling more shares.[4]
4. (d)Identify and explain a reason why the following stakeholders would be interested in using company D's accounts.[6]
5. (e)Do you think the performance of company D in 2011 has improved? Justify your conclusion using the data provided.[6]

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