Unit 9 Study Exercises.docx - Question 9.1 Five identical...

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Question 9.1 Five identical vehicles which cost $500,000 (total) are acquired on April 1, 2018. Their estimated residual value is $20,000 and expected life is eight years. These assets are Class 10 with a maximum CCA rate of 30%. The company has a December 31 year end. Required Calculate the depreciation expense/CCA (to the nearest dollar) by each of the following methods: 1. Straight-line for 2018
2. Double declining-balance for 2019
3. Maximum Capital cost allowance for 2019
Question 9.2 Shark Tank Ltd. provides the following selected information for the calendar years 2020 and 2019: 2020 2019 Net Revenue 320,000 Net Income 75,000 A/R 33,000 26,000 Inventory 61,000 55,000 Total Assets 210,000 176,000 Total Liabilities 84,000 74,000 (176,000 + 210,000)/2 = 193,000 Required For 2020, calculate the following ratios to two decimals: 1. Asset turnover ratio
Sales Revenue / Average Total Assets 320,000/193,000 =1.66

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