Homework Answers
Part 1
|
Stockholders’ equity |
$12.4 |
million |
Assets = liabilities + stockholders’ equity
$28.6 million = $16.2 million + stockholders’ equity
Stockholders’ equity = $28.6 million-$16.2 million = $12.4 million
Part 2
|
Operating Lease |
Capital Lease |
|
|
Debt to equity ratio |
1.31 |
1.56 |
Debt to equity ratio = total liabilities / stockholders’ equity
Debt to equity ratio (operating lease) = $16.2 million / $12.4 million = 1.31
Debt to equity ratio (capital lease) = ($16.2 million+$3.2 million) / $12.4 million = 1.56
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Exercise 9-3 Compare operating and capital leases (LO9-3, 9-8) Coney Island enters into a lease agreement...
Exercise 9-3 Compare operating and capital leases (LO9-3, 9-8) Coney Island enters into a lease agreement...
Exercise 9-3 Compare operating and capital leases (LO9-3, 9-8) Coney Island enters into a lease agreement for a new ride valued at $3.7 million. Prior to this agreement, the company's total assets are $30.1 million and its total liabilities are $16.7 million Required 1. Calculate total stockholders' equity prior to the lease agreement. (Enter your answer in millions not in dollars, rounded to 2 decimal places. (i.e. $5,500,000 should be entered as 5.5).) Stockholders' equitymillion 2. & 3. Calculate the...
CH9 Coney Island enters into a lease agreement for a new ride valued at $3.3 million....
CH9
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Exercise 9-4A Understand the effect of leases on financial ratios (L09-3, 9-8) Coney Island enters into...
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Brief Exercise 9-21 Calculate ratios (LO9-8) Surf's Up, a manufacturer of surfing supplies and training equipment,...
Brief Exercise 9-21 Calculate ratios (LO9-8) Surf's Up, a manufacturer of surfing supplies and training equipment, has the following selected data ($ in millions): Surf's Up Selected balance sheet data 2021 Total assets $ 739 Total liabilities 622 Total stockholders' equity 117 2020 $ 730 524 206 Surf's Up Selected income statement data 2021 Sales revenue $807 Interest expense Tax expense 39 Net income Based on these amounts, calculate the following ratios for 2021: (Do not round intermediate calculations. Round...
Analyzing and Interpreting Footnote on Operating and Capital Leases Assume Verizon Communications, Inc., provides the following...
Analyzing and Interpreting Footnote on Operating and Capital Leases Assume Verizon Communications, Inc., provides the following footnote relating to its leasing activities in its 10-K report. The aggregate minimum rental commitments under noncancelable leases for the periods shown at December 31, 2010, are as follows: Years (dollars in millions) Capital Leases Operating Leases 2011 $ 83 $ 1,449 2012 71 1,316 2013 67 1,056 2014 63 806 2015 46 527 Thereafter 161 1,937 Total minimum rental commitments 491 $ 7,091...
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CLICK HERE TO REVIEW LEARNING OBJECTIVES QUESTION 4 Partially correct Mark 0.33 out of 1.00 Flag question Analyzing and Interpreting Leasing Footnote The Home Depot, Inc. included the following footnote in its fiscal 2014 10-K report: The approximate future minimum lease payments under capital and all other leases at February 1, 2015 were as follows (amounts in millions): (in millions) Capital Leases Operating Leases 2015 $113 $893 2016 817 2017 108 737 2018 101 638 2019 97 561 880 4,059...
YUM! Brands, Inc., reports the following footnote relating to its capital and operating leases in its...
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Analyzing and Interpreting Footnote on Operating and Capital Leases Verizon Communications, Inc.,...
Analyzing and Interpreting Footnote on Operating and Capital Leases Verizon Communications, Inc., provides the following footnote relating to its leasing activities in its 10-K report. The aggregate minimum rental commitments under noncancelable leases for the periods shown at December 31, 2015, are as follows: Years ($ millions) 2016 2017 2018 2019 2020 Thereafter Total minimum rental commitments Capital Leases Operating Leases $2,744 2,486 2,211 1,939 1,536 7,297 $18,213 $302 278 187 97 45 159 1,068 Less interest and executory costs...
Thrillville has $40.5 million in bonds pavable. One of the contractual agreements in the bond is...
Thrillville has $40.5 million in bonds pavable. One of the contractual agreements in the bond is that the debt to equity ra cannot exceed 2.0. Thrillville's total assets are $80.5 million, and its liabilities other than the bonds payable are $10.5 million. The company is considering some additional financing through leasing. Problem 9-3A Part 3 3. The company enters a lease agreement requiring lease payments with a present value of $15.5 million Record the lease. (if entry is required for...
Exercise 9-3 Compare operating and capital leases (LO9-3, 9-8) Coney Island enters into a lease agreement for a new ride valued at $3.7 million. Prior to this agreement, the company's total assets are $30.1 million and its total liabilities are $16.7 million Required 1. Calculate total stockholders' equity prior to the lease agreement. (Enter your answer in millions not in dollars, rounded to 2 decimal places. (i.e. $5,500,000 should be entered as 5.5).) Stockholders' equitymillion 2. & 3. Calculate the...
CH9
Coney Island enters into a lease agreement for a new ride valued at $3.3 million. Prior to this agreement, their total assets are $28.9 million and their total liabilities are $16.3 million. Required: 1. Calculate total stockholders' equity prior to the lease agreement. (Enter your answer in millions, not in dollars rounded to 2 decimal places. (i.e.$5,500,000 million should be entered as 5.50)) Stockholders' equity million 2.&3. Calculate the debt to equity ratio assuming that it is an operating...
Exercise 9-4A Understand the effect of leases on financial ratios (L09-3, 9-8) Coney Island enters into a lease agreement for a new ride. The lease payments have a present value of $2.8 million. Prior to this agreement, the company's total assets are $274 million and its total liabilities are $15.8 million boints Required: 1. Calculate total stockholders' equity prior to the lease agreement. (Enter your answer in millions not in dollars (ie, $5,000,000 should be entered as 5). Round your...
STARBUCKS’S 2016 LEASE FOOTNOTE EXCERPTS The company mainly uses operating leases. Rental expense under operating lease agreements (in millions): Fiscal Year Ended Minimum rentals Contingent rentals Total Oct. 2, 2016 $1,092.5 130.7 $1,223.2 Sept. 27, 2015 $1,026.3 111.5 $1,137.8 Sept. 28, 2014 $907.4 66.8 $974.2 Minimum future rental payments under noncancelable operating leases as of October 2, 2016 (in millions): Fiscal Year Ending 2017 2018 2019 2020 2021 Thereafter Total minimum lease payments $1,125.1 1,006.2 896.4 821.3 740.5 2,695.5 $7,285.0...
Brief Exercise 9-21 Calculate ratios (LO9-8) Surf's Up, a manufacturer of surfing supplies and training equipment, has the following selected data ($ in millions): Surf's Up Selected balance sheet data 2021 Total assets $ 739 Total liabilities 622 Total stockholders' equity 117 2020 $ 730 524 206 Surf's Up Selected income statement data 2021 Sales revenue $807 Interest expense Tax expense 39 Net income Based on these amounts, calculate the following ratios for 2021: (Do not round intermediate calculations. Round...
CLICK HERE TO REVIEW LEARNING OBJECTIVES QUESTION 4 Partially correct Mark 0.33 out of 1.00 Flag question Analyzing and Interpreting Leasing Footnote The Home Depot, Inc. included the following footnote in its fiscal 2014 10-K report: The approximate future minimum lease payments under capital and all other leases at February 1, 2015 were as follows (amounts in millions): (in millions) Capital Leases Operating Leases 2015 $113 $893 2016 817 2017 108 737 2018 101 638 2019 97 561 880 4,059...
Analyzing and Interpreting Footnote on Operating and Capital Leases Verizon Communications, Inc., provides the following footnote relating to its leasing activities in its 10-K report. The aggregate minimum rental commitments under noncancelable leases for the periods shown at December 31, 2015, are as follows: Years ($ millions) 2016 2017 2018 2019 2020 Thereafter Total minimum rental commitments Capital Leases Operating Leases $2,744 2,486 2,211 1,939 1,536 7,297 $18,213 $302 278 187 97 45 159 1,068 Less interest and executory costs...
Thrillville has $40.5 million in bonds pavable. One of the contractual agreements in the bond is that the debt to equity ra cannot exceed 2.0. Thrillville's total assets are $80.5 million, and its liabilities other than the bonds payable are $10.5 million. The company is considering some additional financing through leasing. Problem 9-3A Part 3 3. The company enters a lease agreement requiring lease payments with a present value of $15.5 million Record the lease. (if entry is required for...
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