Reference no: EM132778078
Questions -
Q1) Wren Corp. reported the following data on its most recent financial statements:
Net revenues: $312,500
Net income 58,200
Total assets, Jan 1174,280
Total assets, Dec 31168,420
To two decimals, what is Wren Corp.'s asset turnover ratio?
a. 1.82
b. 1.79
c. 0.35
d. 0.34
Q2) Wren Corp. reported the following data on its most recent financial statements:
Net revenues: $312,500
Net income 58,200
Total assets, Jan 1174,280
Total assets, Dec 31168,420
To two decimals, what is Wren Corp.'s profit margin ratio?
a. 33.97%
b. 18.62%
c. 18.24%
d. 5.37%
Q3) Wren Corp. reported the following data on its most recent financial statements:
Net revenues: $312,500
Net income 58,200
Total assets, Jan 1174,280
Total assets, Dec 31168,420
To two decimals, what is Wren Corp.'s rate of return on assets (ROA)?
a. 18.24%
b. 18.62%
c. 33.97%
d. 34.56%
Q4) Tarantula Corp. reported the following information about the only machine that it owns:
Date of purchase March 31, 2020
Capital cost $200,000
Estimated useful life 10 years
Estimated residual value $20,000
CCA Class Class 10 (30%)
Tarantula uses straight-line depreciation to the nearest month for accounting purposes. Assuming Tarantula always takes the maximum CCA, what is the CCA for calendar 2020?
a. $22,500
b. $30,000
c. $45,000
d. $60,000
Q5) Tarantula Corp. reported the following information about the only machine that it owns:
Date of purchase March 31, 2020
Capital cost $200,000
Estimated useful life 10 years
Estimated residual value $20,000
CCA Class Class 10 (30%)
Tarantula uses straight-line depreciation to the nearest month for accounting purposes. Assume that at the end of calendar 2019, the UCC for this machine is $83,300. Tarantula sells the machine on January 2, 2020 for $90,000, and does not replace it. The recapture of CCA or terminal loss would be
a. $60,500 terminal loss.
b. $56,000 recapture.
c. $6,700 terminal loss.
d. $6,700 recapture.