Question One

Jenny's Mart had sales of $$6,000,000$ in the most recent year. Operating expenses were $$4,200,000.$

Interest and taxes totaled $$600,000.$ Total liabilities were $$300,000$ and owners' equity was $$900,000.$

Required

Calculate the following:

$($a$)$ The return on assets

$($b$)$ The return on equity

Question Two

Carter's Transport is a trucking business. On January $1,$ the company owed its drivers a total of $$25,000$

for trips driven in the previous year. During the year, it paid drivers a total of $$640,000$ for trips driven.

On December $31,$ the company owed drivers a further $$35,000$ for trips driven in December.

Required

Calculate the wage expense for the year.

Question Three

Lara's Groceries purchased a new secure storage cabinet in the current year for $$9,000.$ The store

expects to use it for $12$ years and then replace it with a new one, selling the old one for $$2,500.$

Required

Using the straight$-$line depreciation method, calculate the annual depreciation expense.Question One

Jenny's Mart had sales of $$6,000,000$ in the most recent year. Operating expenses were $$4,200,000.$ Interest and taxes totaled $$600,000.$ Total liabilities were $$300,000$ and owners$$ equity was $$900,000.$

Required

Calculate the following:

$($a$)$ The return on assets

$($b$)$ The return on equity

Question Two

Carter's Transport is a trucking business. On January $1,$ the company owed its drivers a total of $$25,000$ for trips driven in the previous year. During the year, it paid drivers a total of $$640,000$ for trips driven. On December $31,$ the company owed drivers a further $$35,000$ for trips driven in December.

Required

Calculate the wage expense for the year.

Question Three

Lara$$s Groceries purchased a new secure storage cabinet in the current year for $$9,000.$ The store expects to use it for $12$ years and then replace it with a new one, selling the old one for $$2,500.$

Required

Using the straight$-$line depreciation method, calculate the annual depreciation expense.