Use the Table for the Question(s)below

question 10

Multiple Choice

Use the table for the question(s) below.
The quarterly working capital levels for Hasbeen Toys are presented in the following table (in $ millions) :
-The permanent working capital needs for Hasbeen Toys is closest to:

• A)$1100 million.
• B)$2435 million.
• C)$1275 million.
• D)$765 million.

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Definitions:

Temporary Difference

Refers to differences between the carrying amount of an asset or liability in the balance sheet and its tax base that will result in taxable or deductible amounts in future periods.

Straight Line Depreciation

A method of allocating the cost of a tangible asset over its useful life in equal annual amounts.

Capital Cost Allowance

A tax deduction in Canada for the depreciation of tangible property.

Deferred Tax

A tax liability or asset that arises due to temporary differences between the book value and tax value of assets and liabilities.