Q9. After restating Bingaman’s 2004 financials, Schindler and Killen analyze the firm’s financial ratios in order to compare Bingaman
to other firms in its industry. In discussing the impact of the restatement on the financial ratios, Schindler makes the following
four statements:
Statement 1: Bingaman’s return on assets will be lower after restating the financials.
Statement 2: Bingaman’s return on equity will be lower after restating the financials.
Statement 3: The current ratio will remain unchanged after restating the financials.
Statement 4: The long-term debt to total asset ratio will increase after restating the financials.
After their conversation, Killen tells Schindler that he needs to redo some of his calculations because at least one of his assessments are wrong. Which of the following describes Schindler’s statements?
A) Statements 1 and 2 are correct, but Statements 3 and 4 are incorrect.
B) Statements 1 and 4 are correct, but Statements 2 and 3 are incorrect.
C) Statements 1, 2, and 3 are correct, but Statement 4 is incorrect.
Q10. Schindler has determined that fixed capital expenditures for Bingaman are $80 million. What is the free cash flow to the firm
(FCFF) ignoring any effects from capitalizing the operating leases?
A) ?$39,000,000.
B) $31,000,000.
C) $46,000,000.
Q11. The analyst team at Zirconia has been investigating the concept of comprehensive income as a tool for capturing economic
changes to equity. Schindler has been put in charge of the project and has prepared a memo listing adjustments that must be
made to equity in order to compute comprehensive income. Which of the following adjustment items listed in Schindler’s memo
is least likely required under U.S. GAAP in order to calculate comprehensive income?
A) Unrealized gains and losses on available for sale securities.
B) Minimum pension liabilities.
C) Deferred taxes.
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发表于 2009-3-3 11:13
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