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Q6. The Baker Company has an accrued postretirement benefit cost of $3 million on its balance sheet. Examining the ffice ffice" />
notes to Baker's financial statements you find that the accumulated postretirement benefit obligation is $2.5
million. The adjustment you would make to Baker's reported balance sheet in analysis of these statements would
be:
A) a reduction in the reported postretirement obligation of $0.5 million.
B) an increase in plan assets of $0.5 million.
C) an increase in the reported postretirement obligation of $0.5 million.
Correct answer is A)
The excess of the accrued cost over the obligation is the excess accrual (i.e., $3 million - 2.5 million), which reduces the firm's liability.
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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 |
|
|
|
Total current assets |
$38,000 |
Long-term debt |
$24,000 |
|
|
|
|
|
Preferred stock (100,000 shares) |
$7,000 |
|
Net prop., plant & equip.
(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 |
|
|
|
Total liabilities & equity |
$128,000 |
Q7. 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) 0.30.
B) 0.62.
C) 0.50.
Correct answer is A)
$24,000 / $79,000 = 0.304
Q8. ABC's fixed-asset turnover based on the historical balance sheet is:
A) 1.92 times.
B) 2.78 times.
C) 3.13 times.
Correct answer is C)
$250,000 / $80,000 = 3.125 times
Q9. ABC's ratio of long-term debt to equity based on the adjusted balance sheet is:
A) 0.62.
B) 0.30.
C) 0.50.
Correct answer is C)
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ABC Company
Adjusted 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 |
|
|
Total current assets |
$38,000 |
Long-term debt |
$25,000 |
|
|
Capitalized operating leases |
10,000 |
|
|
|
|
Net P,P&E |
$90,000 |
Preferred stock (100,000 shares) |
$5,000 |
|
Intangible assets |
2,000 |
Common stock (4 million shares) |
40,000 |
|
|
Retained earnings |
32,000 |
|
Total assets |
$130,000 |
Equity adjustments |
-7,000 |
|
|
Total stockholders' equity |
$70,000 |
|
|
Total liabilities & equity |
$130,000 |
Equity adjustments: ?$8,000 [goodwill] ? 1,000 [increase in long-term debt] + 2,000 [decrease in preferred stock] = ?$7,000
$35,000 / $70,000 = 0.500
[此贴子已经被作者于2009-3-3 11:30:13编辑过] | 
发表于 2009-3-3 11:20
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