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28 Cards in this Set
- Front
- Back
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Current Ratio |
Current Assets / Current Liabilities |
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Quick Ratio |
Current Assets - Inventory / Current Liabilities |
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Liquidity Ratios |
Ability to quickly pay off liabilities Higher is better |
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Gross Margin Ratio |
Gross profit / net revenue |
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Profitability Ratios |
Higher value = retain more capital |
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EBIT Margin |
Operating income / net revenue |
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Net profit margin |
Net income / revenue |
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Interest coverage ratio |
EBIT / interest expense |
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Interest coverage ratio (solvency) |
Explains how many times interest payments are covered |
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Debt - Asset Ratio calculation |
Debt / assets |
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Debt - Asset Ratio (solvency) |
Ability to pay off debts Lower = better |
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Debt - equity ratio calculation |
Debt / equity |
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Debt-equity ratio |
Determines how your company is funded Higher = more debt |
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Small Business Deduction |
19% of the lessor of: a) taxable income b) active business income c) business limit 500,000 |
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General Rate Reduction |
13% of Taxable income Less: SBD deduction Less: AII |
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General Rate Reduction |
13% of Taxable income Less: SBD deduction Less: AII |
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AII Aggregate investment income |
Net Taxable CG + property income - less dividends - property losses |
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General Rate Reduction |
13% of Taxable income Less: SBD deduction Less: AII |
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AII Aggregate investment income |
Net Taxable CG + property income - less dividends - property losses |
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Additional Part 1 tax |
10 2/3% x lessor of: a) AII b) taxable income less lessor of: i) ABI ii) taxable income iii) SBD
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Part IV tax |
Dividends x 38 1/3% |
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Part IV tax |
Dividends x 38 1/3% |
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RDTOH |
Opening balance - last years dividend refund + refundable tax on AII (AII x 30 2/3%) + part IV tax |
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Dividend refund |
Lessor of: a) 38 1/3% x taxable divs paid b) RDTOH balance |
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Dividend refund |
Lessor of: a) 38 1/3% x taxable divs paid b) RDTOH balance |
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Basic federal tax rate |
38% |
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Audit categories |
- company overview - industry overview - financial health - inherent risks - audit approach - materiality - procedures |
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Personal Tax Donations |
15% first 200 33% rest |
