Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Accounting for a Financing Lease:
Tauntron Manufacturing Inc is a machine shop in Taunton, Massachusetts. The firm recently leased drill press for 20 year term at payments of $9000 per year payable at year end. No residual value was assumed in the lease which is clearly a financing lease. Taunton can borrow at 8% and will depreciate the press straight line over 20 years.
Shortly before the lease became effective, Taunton's balance sheet was as followed:
Taunton Manufacturing Inc. Balance Sheet ($000)
Current Assets
$35
Current Liabilities
$15
Fixed Assets
$315
Long-term debt
$65
Total Assets
$350
Equity
$70
Total liabilities &equity
$150
Answer the following questions working in whole dollars but present balance sheet accounts rounded to the nearest $1000.
a. Construct Taunton's balance sheet showing the capitalized lease and the related lease obligation.
b. Calculate the firm's debt ratio before and after the lease, and comment on the difference
c. Reconstruct the balance sheet at the end of the first year assuming the other accounts remain the same.
What is the total interest expense over the life of the bonds cash interest payments? Premium amortization?
You have decided to become a rock concert promoter & have made arrangements with Jerry Jones to rent the new Texas Stadium for one night for a cost of dollar 1,000,000 plus a dollar 7 each ticket participation fees.
Does the essay by Wayne F. Cascio, Decency Means More than Always Low Prices: A Comparison of Costco to Wal-Mart's Sam's Club, tend to support the position of Milton Friedman or R. Edward Freeman?
What type of risk was measured and accounted for in Parts b and c? Should this be of concern to the hospital's managers - Perform a sensitivity analysis to see how NPV is affected by changes in the number of procedures per day,
Determine the interest expense that Coley Co. will show with respect to these bonds in its income statement for the fiscal year ended September 30, 2009, assuming that the discount of $360,000 is amortized on a straight-line basis.
Explain the process of financial planning used to estimate asset investment requirements for a corporation. Explain the concept of working capital management. Identify and briefly describe several financial instruments that are used as marketable ..
Internal financial data is not available to public, so we have to rely on external data for our analysis. Review the financial statements for 2 years for your firm which is Walgreens and another firm which is CVS in the same industry.
Can someone please provide information on the following: what the company can do to handle short-term debt that is coming due.
What are the positive aspects of increasing adoption of E-Finance globally and what are the major challenges due to the increasing use of E-Finance?
Mark is planning forecasts of expected economic growth. He plans to invest $120,000 in an investment whose return would depend on the economic situations.
Preparation of Product Cost and analyzing Wastage, Spoilage and Compute the cost of good units completed and transferred out, spoilage, and ending inventory using the eighted-average method.
Multiple choice questions on Market price and Stocks - Find the expected market price after repurchase?
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd