1. Crocodile Corp. sells an intangible asset. Its historical cost is $12 million, with accumulated depreciation at the time of sale of $2 million. The company reports a $3.2 million loss on the sale of the asset. What was the assets likely sales price?

$8.8 million

$6.8 million

$10.8 million

$13.2 million

2. Compared to using an operating lease, a lessee that makes use of an operating lease will MOST LIKELY report higher:

Debt

Rent Expense

Cash flows from operations

3. An analyst has compiled the following data for a company:

FY 2016 FY 2017 FY 2018

ROE 19.8% 20% 22%

ROA 8.1% 8% 7.9%

Asset Turnover 2.0 2.0 2.1

Based only on the above information, the MOST appropriate conclusion is that over the three year period, the companys:

Net margin and financial leverage have decreased

Net margin and financial leverage have increased

Net margin has increased but financial leverage has decreased

Net margin has decreased but financial leverage has increased

4. You have the following data for a company:

FY 2016 FY 2017

Fixed Assets $2.8 million $2.8 million

Accumulated Depreciation $1.2 million $1.6 million

The company uses straight line depreciation with no salvage value. At the end of FY 2017, the average age of the companys fixed assets is _______________ years, and the average depreciable life of its fixed assets is ______________ years.