答案和详解如下： 6.Which of the following adjustments should Schmidt make to Landesign’s financial statements to account for the greenhouse that Landesign uses to grow plants and store mulch? A) Increase both liabilities and assets by $341,500. B) Increase liabilities and decrease equity by $440,000. C) Increase both liabilities and assets by $328,400. D) Increase both liabilities and assets by $440,000. The correct answer was A) The rental agreement for the greenhouse is an operating lease and essentially represents off-balance sheet financing. To adjust Landesign’s balance sheet for the operating lease, Schmidt needs to capitalize the lease by increasing both liabilities and assets by the present value of the lease payments. The interest rate used in the present value computation is the lower of the firm’s financing rate or the rate implicit in the lease. We are told that the rental payments of $55,000 are based on an interest rate of 7 percent. However, we are told in another footnote that Landesign expects to be able to borrow funds in the future at a rate of 6 percent. We therefore use the lower firm financing rate of 6 percent in our computation. The present value of the lease payments is: N = 8; I/Y = 6%; PMT = -55,000; FV = 0; CPT PV = $341,539. 7.Regarding the comments made about Landesign’s growth through acquisition strategy: A) Kelley’s comment was incorrect; Schmidt’s comment was correct. B) Kelley’s comment was incorrect; Schmidt’s comment was incorrect. C) Kelley’s comment was correct; Schmidt’s comment was incorrect. D) Kelley’s comment was correct; Schmidt’s comment was correct. The correct answer was B) Kelley and Schmidt both made incorrect comments concerning Landesign’s growth through acquisition strategy. Kelley was correct that purchase method accounting will lead to higher depreciation, and potentially lower quality earnings as a result of restating asset values to fair market value. However, Kelley was incorrect insofar as the comment on balance sheet restatement, since only the assets of the target are restated to fair value – the value of the acquirer, in this case Landesign, would not be revalued. Schmidt was incorrect in stating that liquidity ratios such as the quick ratio and cash ratio should improve. The current ratio is likely to improve in a purchase method acquisition due to the revaluation of the target’s inventory. However, the quick ratio and cash ratio do not include inventory in their calculation, so the effect of the acquisition on those ratios is inconclusive. 8.Which of the following statements regarding the adjustments that Schmidt should make to Landesign’s financial statements for its sale of receivables is CORRECT? A) Accounts receivable should be increased by $123,500, cash should be decreased by $123,500, and a loss of $6500 should be recognized on the income statement. B) Accounts receivable should be increased by $123,500, loans payable should be increased by $123,500, and a loss of $6,500 should be recognized on the income statement. C) $123,500 should be added to cash flow from financing, and $123,500 should be subtracted from cash flow from operations. D) $6,500 should be recorded as a negative cash flow from investing, $130,000 should be added to cash flow from financing, and $123,500 should be subtracted from cash flow from operations. The correct answer was C) When receivables are sold with recourse, the risk of noncollection of sold receivable is retained by Landesign. Therefore, Schmidt should make two adjustments: (1) The sale of receivables should be reclassified as CFF instead of CFO, meaning that $123,500 should be added to cash flow from financing, and $123,500 should be subtracted from cash flow from operations. (2) The full amount of the receivables, $130,000, should be added to accounts receivable, and a liability called loan payable of $123,500 should be added to the liabilities side of the balance sheet. Note that no adjustments to income are made at this time. As the receivables are collected, the 5% discount ($6,500) is amortized as interest expense. 9. ABC Company
Balance Sheet (in thousands of dollars) | Assets |
| Liabilities and Stockholders' Equity | Cash | $5,000 | Accounts payable | $18,000 | Marketable securities | 3,000 | Notes payable | 7,000 | Accounts receivable | 20,000 | Total current liabilities | $25,000 | Inventories | 10,000 |
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| Total current assets | $38,000 | Long-term debt | $24,000 |
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| Preferred stock (100,000 shares) | $7,000 | Net P, P, & E | $80,000 | Common stock (4 million shares) | 40,000 | Intangible assets | 10,000 | Retained earnings | 32,000 | Total assets | $128,000 | Total stockholders' equity | $79,000 |
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| Total liabilities & equity | $128,000 |
The following information is obtained from footnotes to ABC's financial statements and other sources: §
Inventories are valued at cost as determined by the first in, first out (FIFO) method. §
Additional operating facilities are financed with operating leases that have a present value of $10 million. §
Intangible assets represent $8 million of goodwill from previous acquisitions. §
Due to a decrease in interest rates, ABC's long-term debt has a current market value of $25 million. §
The current market price of ABC's preferred stock is $50 per share. §
Sales revenue for the period is $250 million. ABC's ratio of long-term debt to equity based on the historical cost balance sheet is: A) 0.50. B) 0.62. C) 0.86. D) 0.30. The correct answer was D) $24,000 / $79,000 = 0.304 10.ABC's fixed-asset turnover based on the historical balance sheet is: A) 1.92 times. B) 3.13 times. C) 1.95 times. D) 2.78 times. The correct answer was B) $250,000 / $80,000 = 3.125 times | 
发表于 2008-5-20 17:09
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