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University Car Wash built a deluxe car wash across the street from campus. The new machines cost $255,000 including installation. The company estimates that the equipment will have a residual value of $22,500. University Car Wash also estimates it will use the machine for six years or about 12,500 total hours. Actual use per year was as follows: Year Hours Used 1 3,100 2 1,600 3 1,700 4 2,300 5 2,100 6 1,700

2. Prepare a depreciation schedule for six years using the double-declining-balance method. (Do not round your intermediate calculations.)

2. Prepare a depreciation schedule for six years using the double-declining balance method. (Do not round your intermediate calculations.) UNIVERSITY CAR WASH Depreciation Schedule-Double-Declining-Balance End of year amounts Depreciation Accumulated Book Value Expense Depreciation Year 1 4 5 6 6 Total Required information [The following information applies to the questions displayed below.) University Car Wash built a deluxe car wash across the street from campus. The new machines cost $255,000 including installation. The company estimates that the equipment will have a residual value of $22,500. University Car Wash also estimates it will use the machine for six years or about 12,500 total hours. Actual use per year was as follows: Year 1 2 3 4 5 6 Hours Used 3,100 1,600 1,700 2,300 2,100 1,700 3. Prepare a depreciation schedule for six years using the activity-based method. (Round your "Depreciation Rate" to 2 decimal places and use this amount in all subsequent calculations.) UNIVERSITY CAR WASH Depreciation Schedule-Activity-Based End of year amounts Depreciation Accumulated Expense Book Value Depreciation Year 1 2 3 4 5 6 Total ! Required information [The following information applies to the questions displayed below.] Sub Station and Planet Sub reported the following selected financial data ($ in thousands). Sub Station's business strategy is to sell the best tasting sandwich with the highest quality ingredients. Planet Sub's business strategy is to sell the lowest cost sub on the planet. Net sales Net income Total assets, beginning Total assets, ending Sub Station $ 108,949 26,622 75,883 117,771 Planet Sub $62,771 4,192 39,799 45,933 Required: 1. Calculate Sub Station's return on assets, profit margin, and asset turnover ratio. (Enter your answers in thousands of dollars. (i.e. 123,000 should be entered as 123).) Return on Assets Choose Denominator Choose Numerator = Return on Assets Return on assets = Profit Margin Choose Denominator Choose Numerator : = Profit Margin Profit Margin = Asset Turnover Choose Denominator Choose Numerator = Asset Turnover Asset Turnover times = Required information [The following information applies to the questions displayed below.] Sub Station and Planet Sub reported the following selected financial data ($ in thousands). Sub Station's business strategy is to sell the best tasting sandwich with the highest quality ingredients. Planet Sub's business strategy is to sell the lowest cost sub on the planet. Net sales Net income Total assets, beginning Total assets, ending Sub Station $ 108,949 26,622 75,883 117,771 Planet Sub $62,771 4,192 39,799 45,933 2. Calculate Planet Sub's return on assets, profit margin, and asset turnover ratio. (Enter your answers in thousands of dollars. (i.e. 123,000 should be entered as 123).) Return on Assets Choose Numerator . Choose Denominator Return on Assets Return on assets Profit Margin Choose Denominator Choose Numerator Profit Margin Profit Margin = . Asset Turnover Choose Denominator Choose Numerator + = Asset Turnover Asset Turnover = times