财务报表分析与运用杰拉尔德课后答案英文版第十一章

11-1Chapter11SolutionsOverview:ProblemLengthProblem#s{S}1-4,9,11,12,15,16,21,22{M}5,7,8,10,13,14,17,18,20,23,24{L}6,19,251.{S}(i)Interestexpense=12%x$10,000(beginningbalanceofleaseobligation)=$1,200.(ii)Theleaseobligationwillbereducedby$100($1,300-$1,200)leavinganobligationof$9,900.(iii)CashfromOperationswillbereducedbytheinterestpaymentof$1,200.Cashfrominvestingactivitieswillnotbeaffected.(However,thefirmwillreportthecapitalleaseasa“noncashinvestmentandfinancingactivity.”Cashfromfinancingwillbereducedbytheamountoftheprincipalpaymentof$100.(iv)Underanoperatingleasethereisnoleaseobligationonthebalancesheet.TheonlyeffectonincomeisRentExpenseof$1,300.Similarly,CFOisreducedby$1,300.(CFIandCFFarenotaffected).2.{S}(i)Inatake-or-payarrangement,acompanycontractstobuyorpayforacertainamountofasupplier’scommodityatapredeterminedpriceoverastatedtimeperiod.Thecompany,byenteringthecontract,incursaneconomicliability.However,sinceitisonlyacontract,noaccountingliabilityisrecordedonthebalancesheet–itisoffbalancesheet.(ii)Inasaleofreceivable,acompany“sells”itsreceivablestoathird-party,usuallyafinancialinstitution.Typically,thesaleismadeatadiscountedpricefromthefacevalueandthesellermayretainsomeorallofthedefaultrisk.Thesale,insubstance,isafinancingarrangementwiththereceivablesbeingusedascollateral.However,underGAAP,thetransactionistreatedasasaleandthedebtdoesnotappearonthebalancesheet.(iii)Ajointventurerepresentsaninvestmentof50%orlessbyonecompany(the“investor”)inanothercompany.UnderGAAP,sinceownershipisnotover50%,theassetsandliabilitiesofthejointventureneednotbeconsolidatedwiththeparent’sassetsandliabilities.Hence,anydebttakenonbythejointventureremainsoffbalancesheetevenwhentheinvestorisliableforthedebt.11-23.{S}Effectofchoiceofinterestrateonlessee:9%versus10%FirstYearLeaseTerm(i)Interestexpense:Lowerinterestratereducesinterestexpense.LowerLower(ii)Amortizationexpense:Lowerinterestrateincreasespresentvalueofminimumleasepayments,creatinghigherassetamounttobeamortizedoverleaseterm.HigherHigher(iii)Totalleaseexpense:Theneteffectforthefirstyeardependsontheleaseamounts;overtheleaseterm,however,totalexpenseequalstotalleasepaymentsregardlessofthechoiceofinterestrate.IndeterminateEqual(iv)Cashfromoperations:Lowerinterestrateshiftsexpensefrominteresttoamortization(seeiandii);ascashfromoperationsisdecreasedonlybyinterestexpense,adecreaseininterestexpenseincreasesCFO,bothinthefirstyearandovertheleasterm.HigherHigher(v)Averageassets:Lowerinterestrateincreasespresentvalue(seeii)resultinginhigheraverageassets,bothinfirstyearandoverleaseterm.HigherHigher(vi)Averageliabilities:Lowerinterestrateincreasespresentvaluerecognizedasliability,bothinfirstyearandoverleaseterm.HigherHigher4.{S}a.Pallavimustcapitalizetheleasebecausetheleaseagreementcontainsabargainpurchaseoption.Notethattheleasealsomeetsoneothercapitalizationcriterion:Thepresentvalueofminimumleasepaymentsexceeds90%ofthefairmarketvalueoftheequipment(seepartbforcomputations).b.Thefairmarketvalueoftheassetis$125,000.ThepresentvalueoftheMLPsis$127,785(at8%,thelowerofthelesseeandlessorrates);theassetmustbecapitalizedatthe(lower)fairmarketvalue.(NotethattheleaseobligationisthesumofthepresentvaluesoftheMLPsandthebargainpurchaseoption–thelatterisnotprovided.)11-3c.Leasesmustbecapitalizedatthelesserofthepresentvalueofleasepaymentsorthefairvalueofthelease;inthiscase,theleasemustbecapitalizedatthefairvalueof$125,000.d.Theexistenceofthebargainpurchaseoptionrequiresdepreciationovertheestimatedeconomiclifeoftheassetratherthanthe(shorter)leaseterm.e.Theoptioncreatesthepresumptionthattheassetwillbeheldpasttheexpirationdateofthelease.Otherwiseitmustbeassumedthatuseoftheassetwillreverttothelessoratexpiration,requiringthelesseetodepreciatetheleasedassetoverthe(shorter)leaseterm.5.{M}a.ThefollowingstatestheeffectsofTolremusingthecapitalleasemethodascomparedwiththeoperatingleasemethod.(i)Cashfromoperationsishigherasonlytheinterestportionofleaseexpenseisdeductedfromoperatingcashflows;totalleaseexpenseisdeductedforoperatingleases.(ii)Financingcashflowislowerforcapitallease,aspartofleaserentalistreatedasamortizationofliabilityandclassifiedasfinancingcashoutflow.(iii)Investingcashflowisnotaffectedbytheleasetreatment.However,thefirmwillreportcapitalleasesinthestatementofcashflows(orafootnote)asnoncashinvestmentactivities.(iv)Netcashflowreflectstheactualrentalpaymentandisunaffectedbythefinancialreportingtreatmentofthelease.(v)Debt/equityratioishigherforcapitallease,asitrecordsthepresentvalueofminimumleasepaymentsasdebtandreducesnetincome(andthereforeequity)infirstyear.(vi)Interestcoverageratioisusually(notalways)lowerforcapitalleasemethod,whichreportsinterestexpensebutalsohigherEBIT,see(vii).Forcoverageratioswellabove1.0,theratiowilldecline.IftheincreaseininterestexpenseexceedstheincreaseinEBIT,theratiowilldeclineevenforfirmswithverylowcoverageratios.11-4(vii)Operatingincomeislowerforoperatingleasebecausethetotalleasepaymentisanoperatingexpense;forcapitallease,interestportionofleaseexpenseisnonoperating.(viii)Ne