CPA CORE REFERENCE SCHEDULE
1. RATIO REFERENCE LIST
The following list of ratios is provided as a quick reference tool. The list is not intended to be
comprehensive, but rather to provide the most commonly used ratios. Additional ratios may be
included in the CPA Examinations. Candidates are advised to use judgment in applying these
formulae. In some cases, a modification to the components of the formula may be required
based on the facts presented. E.g. if average balances are not available, ending balances are
substituted.
Current ratio
Quick ratio
Receivables turnover
Average collection period
Inventory turnover
Inventory period
Gross margin ratio
Profit margin ratio
Return on assets
Return on equity
Debt ratio
Debt-to-equity
Debt service coverage
Times interest earned
Asset turnover
Asset turnover in days
Accounts Payable turnover
Days payable outstanding
Price earnings
Dividend Payout
Current Assets / Current Liabilities
(Current Assets – Inventory – Prepaid Expenses) / Current
Liabilities
Credit Sales / Average Accounts Receivable
Average Accounts Receivable / (Credit Sales / 365)
Cost of Goods Sold / Average Inventory
Average Inventory / (Cost of Goods Sold / 365)
(Sales - Cost of Goods Sold) / Sales
Net Income / Sales
Net Income / Average Total Assets
Net Income / Average Equity
Total Liabilities / Total Assets
Total Liabilities / Equity
Net operating income / (Principal + Interest payments)
EBIT / Interest Expense
Sales / Average Total Assets
365 / (Sales / Average Total Assets)
Purchases / Average Accounts Payable
Ending Accounts payable / (Cost of Goods Sold / 365)
Market Price of Shares / Earnings per Share
Yearly dividend per share / Earnings per share OR
Dividends / Net income
2. PRESENT VALUE OF TAX SHIELD FOR AMORTIZABLE ASSETS
Present value of total tax shield from CCA for a new asset acquired before November 21, 2018
=
𝐶𝑇𝑑
2+𝑘
(
)
(𝑑+𝑘) 2(1+𝑘)
𝐶𝑑𝑇
= (𝑑+𝑘) (
1+0.5𝑘
1+𝑘
)
Present value of total tax shield from CCA for a new asset acquired after November 20, 2018
=
𝐶𝑑𝑇 1+1.5𝑘
(
)
(𝑑+𝑘)
1+𝑘
Notation for above formula:
C = net initial investment
T = corporate tax rate
k = discount rate or time value of money
d = maximum rate of capital cost allowance
3. SELECTED PRESCRIBED AUTOMOBILE AMOUNTS
Maximum depreciable cost — Class 10.1
Maximum monthly deductible lease cost
Maximum monthly deductible interest cost
Operating cost benefit — employee
Non-taxable automobile allowance rates
— first 5,000 kilometres
— balance
2018
$30,000 + sales tax
$800 + sales tax
$300
26¢ per km of personal
use
2019
$30,000 + sales tax
$800 + sales tax
$300
28¢ per km of personal
use
55¢ per km
49¢ per km
58¢ per km
52¢ per km
4. INDIVIDUAL FEDERAL INCOME TAX RATES
For 2018
If taxable income is between
$0 and
$46,605
$46,606 and
$93,208
$93,209 and
$144,489
$144,490 and
$205,842
$205,843 and
any amount
Tax on base amount
$0
$6,991
$16,544
$29,877
$47,670
Tax on excess
15%
20.5%
26%
29%
33%
If taxable income is between
$0 and
$47,630
$47,631 and
$95,259
$95,260 and
$147,667
$147,668 and
$210,371
$210,372 and
any amount
Tax on base amount
$0
$7,145
$16,908
$30,534
$48,718
Tax on excess
15%
20.5%
26%
29%
33%
For 2019
5. SELECTED INDEXED AMOUNTS FOR PURPOSES OF COMPUTING INCOME TAX
Personal tax credits are a maximum of 15% of the following amounts:
Basic personal amount
Spouse, common-law partner, or eligible dependant amount
Age amount if 65 or over in the year
Net income threshold for age amount
Canada employment amount
Disability amount
Canada caregiver amount for children under age 18
Canada caregiver amount for other infirm dependants age 18 or
older (maximum amount)
Net income threshold for Canada caregiver amount
Adoption expense credit limit
2018
$11,809
11,809
7,333
36,976
1,195
8,235
2,182
6,986
2019
$12,069
12,069
7,494
37,790
1,222
8,416
2,230
7,140
16,405
15,905
16,766
16,255
2018
$2,302
5,500
26,230
848,252
2019
$2,352
6,000
26,500
866,912
Other indexed amounts are as follows:
Medical expense tax credit — 3% of net income ceiling
Annual TFSA dollar limit
RRSP dollar limit
Lifetime capital gains exemption on qualified small business
corporation shares
6. PRESCRIBED INTEREST RATES (base rates)
Year
Jan. 1 – Mar. 31
Apr. 1 – June 30
July 1 – Sep. 30
Oct. 1 – Dec. 31
2019
2018
2017
2
1
1
2
1
2
1
2
1
This is the rate used for taxable benefits for employees and shareholders, low-interest loans,
and other related-party transactions. The rate is 4 percentage points higher for late or deficient
income tax payments and unremitted withholdings. The rate is 2 percentage points higher for
tax refunds to taxpayers, with the exception of corporations, for which the base rate is used.
7. MAXIMUM CAPITAL COST ALLOWANCE RATES FOR SELECTED CLASSES
Class 1……………………………….
Class 1……………………………….
Class 1……………………………….
Class 8……………………………….
Class 10……………………………..
Class 10.1…………………………...
Class 12……………………………..
Class 13……………………………..
Class 14……………………………..
Class 14.1…………………………...
Class 17……………………………..
Class 29……………………………..
Class 43……………………………..
Class 44……………………………..
Class 45……………………………..
Class 50……………………………..
Class 53……………………………..
4% for all buildings except those below
6% for buildings acquired for first use after
March 18, 2007 and ≥ 90% of the square
footage is used for non-residential activities
10% for buildings acquired for first use after
March 18, 2007 and ≥ 90% of the square
footage is used for manufacturing and
processing activities
20%
30%
30%
100%
Original lease period plus one renewal period (minimum
5 years and maximum 40 years)
Length of life of property
5% For property acquired after December 31, 2016
8%
50% Straight-line
30%
25%
45%
55%
50%