The 2022 annual report of TatraTea Inc. contains the following information. Note the amount is in thousands of dollars. 

	December 31, 2022	December 31, 2021
Total assets	$1,071,348	$787,167
Total liabilities	626,178	410,044
Consolidated sales	3,374,463	2,443,592
Net income	66,234	49,062

Required

Calculate the following ratios for TatraTea in 2022.

1. Asset turnover ratio
2. Rate of return on assets
3. Profit margin on sales

Question 9.2 (Total: 30 marks)

Pump Fitness Corp. purchased machinery for $260,000 on July 1, 2022. It is estimated that it will have a useful life of 10 years, residual value of $40,000, production of 110,000 units, and working hours of 44,000. During 2023, Pump Fitness Corp. uses the machinery for 6,000 hours, and the machinery produces 14,500 units.

Required

From the information given, calculate the depreciation charge for 2023 under each of the following methods.

1. Straight-line
2. Units of production. Round the units of production charge to the nearest cent.
3. Working hours. Round the per-hour charge to the nearest cent
4. Sum-of-the-years'-digits.
5. Declining balance (use 20% as the annual rate).

Answer rating: 100% (QA)

Answer Net Sales 3374463 Divided by Total Average ... View the full answer