答案和详解如下： 11.Short Haul Airlines reports a commitment to purchase 10 new aircraft at a total cost of $1.2 billion over the next 5 years in its footnotes. The present value of these purchases is estimated to be $780 million. What are the appropriate balance sheet adjustments need to adequately reflect the commitment? Increase long-term liabilities and: A) long-term assets by $1.2 billion. B) decrease equity by $780 million. C) decrease equity by $1.2 billion. D) long-term assets by $780 million. The correct answer was D) Increase long-term liabilities and long-term assets by $780 million. Recall that the balance sheet adjustment is done using present values, not total commitments. 12.The UNI Company Balance Sheet As of December 31, 2002 (in millions)
| 2001 | 2002 |
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| 2001 | 2002 | Cash | $50 | $60 | Accounts payable | $100 | $150 | Accounts receivable | 100 | 110 | Long-term debt | 400 | 300 | Inventory | 200 | 180 | Common Stock | 50 | 50 |
| Retained earnings | 400 | 500 | Fixed assets (gross) | 800 | 900 | Total liabilities and equity | $950 | $1,000 | Accumulated depreciation | 200 | 250 |
| Fixed assets (net) | 600 | 600 | Total assets | $950 | $1,000 | The UNI Company Income Statement | | For year ended December 31, 2002 | | (in millions) | |
| | Sales | $1,000 | | Cost of goods sold | 600 | | Depreciation | 50 | | Selling, general, and administrative expenses | 160 | | Interest expense | 23 | | Income before taxes | $167 | | Tax | 67 | | Net income | $100 | | | | | | | | | |
Additional information: §
UNI uses the last in first out (LIFO) inventory valuation method. The LIFO reserve is $20 for 2002 and $10 for 2001. §
UNI leases equipment. These leases are classified as operating leases and require annual, end-of-year payments of $10 million for each of the next 5 years. The cost of goods sold using FIFO inventory valuation is: A) $580 million. B) $590 million. C) $600 million. D) $610 million. The correct answer was B) Purchases = $600 + 180 – 200 = $580 million
Beginning inventory (FIFO) = $200 + 10 = $210 million
Ending inventory (FIFO) = $180 + $20 = $200 million
COGS (FIFO) = $210 + 580 – 200 = $590 million
Check: FIFO: $210 + 580 = $590 + 200
LIFO: $200 + 580 = $600 + 180 13.Lucky Strike Mining Corp. (LSMC) reports in a footnote to the financial statements that it is party to a variable interest entity (VIE) through which it leases heavy equipment. LSMC has chosen not to report a residual value guarantee of $120 million for the equipment because it is not required to do so under accounting standards. However, the standards will change next year. What is the appropriate analytical treatment of this residual value guarantee? A) Ignore the liability because current accounting standards do not require it to be included on the balance sheet. Include it in next year’s balance sheet adjustments. B) Increase long-term liabilities by $120 million and decrease equity by $120 million. C) Increase long-term liabilities and long-term assets by $120 million. D) Increase long-term assets and equity by $120 million. The correct answer was C) Increase long-term liabilities and long-term assets by $120 million. | 
发表于 2008-5-20 16:52
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