Read the following information and answer the question.

Trade Receivables Turnover Ratio = 4 times
Gross Profit Ratio = 20%
Gross Profit for the year was ₹5,00,000
Bills Receivables = ₹60,000
Net Profit (after) Tax Ratio 12%
Tax Rate is 50%
10% Long-term Borrowings = ₹12,00,000
Shareholders' Funds are ₹ 4,00,000
Non-current Liabilities are ₹18,00,000
Sale of goods on credit only.

Calculate the capital employed by the company.

₹22,00,000

The correct answer is option 2- ₹22,00,000.

Capital Employed = Shareholders’ Funds + non-current liabilities
                             = 4,00,000 + 18,00,000
                             = ₹22,00,000

* Long-term borrowings are included already in non-current liabilities.