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Leasing

Starbucks Integrated Case 6.1

SEE ATTACHED Compute present value of operating lease obligations using a 6 percent discount rate for Starbucks at September 28, 2008....(see attached)... Refer to Exhibit 1.26 (Chapter 1).... To what extent does the capitalization of operating lease obligations affect your assessment of Starbucks' risk? ------ Pl

Rate of Return

The Wisbley Company is contemplating the purchase of a helicopter for its executives to use in their business trips. This helicopter could be either purchased or leased from the manufacturer. The useful life of the helicopter is four years. Data concerning these two alternatives follow: Purchase: purchase price - $900,000 a

Legal Issues Between the Landlord and Tenant

Frank Johnson and Sonia Miller, along with several other friends, were looking to rent a house near campus for the following school year. In June, they orally agreed with a landlord on a one-year lease to begin the following August 15 with a monthly rent of $1,250 and provided a $1,500 security deposit. When they arrived at scho

Eliminating a segment

Eliminating a segment Levene Boot Co. sells men's, women's, and children's boots. For each type of boots sold, it operates a separate department that has its own manager. The manager of the men's department has a sales staff of nine employees, the manager of the women's department has six employees, and the manager of the child

What is the nature of a "sale-leaseback" transaction?

1. What is the nature of a "sale-leaseback" transaction? 2. A company is considering expanding operations and is in the process of determining the strategy that will be used for the financing. After a great deal of debate, management determines that it may issue bond with the proceeds needed to purchase additional assets or t

Customer who is a homeowner who is running a business

I have a customer who is a homeowner who is running a business from their home and has the opportunity to lease solar panels from company x. Company x is responsible for installation, and maintenance of these solar panels, and replacement of the panels if damaged or if they damage the house. The homeowner can buy the panels out

Contract Lease vs. Purchase Options

Discuss, compare and contrast lease verses purchase options. - What is debt financing? Provide at least two examples. - What is equity financing? Provide at least two examples. - Which alternative capital structure is more advantageous? Why?

Factors Affecting Quality of Earnings

See attached file for complete problems. Prepare responses to the following assignment from the e-text, Financial Accounting: Tools for Business Decision Making 4th ed., by Kimmel, Weygandt, and Kieso 1) Chapter 13: Communication Activity: BYP 13-7 Include a memo addressing the problem in BYP 13-7 Prepare responses t

Different Types of Debt Obligations

Analyse different types of debt. Address the following in your paper General Obligation bonds Revenue Bonds Certs of Obligation Commercial Paper Capital leases Notes payable

Stock Flipping Investments

1.What is stock flipping? Do investment banks encourage this kind of practice among their clients? Explain. 2.What are American Depositary Receipts (ADR's) and why have they proven so popular with U.S. investors? 3.What is a debenture? Why do you think that this is the most common form of corporate bond in the United States?

Operations Management Course

Operating a dairy farm, raising cows for the production of raw milk products. Briefly identify the levels of vertical integration that you would anticipate being possible for such an operation (include both backward and forward integration in your response).

Input to Increase Working Capital of the Company Department

See the attachment. 1. A company can be forced to go into bankruptcy if it has a negative working capital and not be able to pay its bills on time. Have you experience such a position or to a lesser extend (short of bankruptcy)? If so what were the remedies taken by your company? 2. Your management approaches you for input

Distribute remaining capital and debt between business members

You are Chris and Pat Smith, entrepreneurs with five years of experience investing in small businesses. Eighteen months ago you decided to invest in a catering venture with two chefs, J. P. Martin and L. L. Miller, who have culinary science degrees and five years of work experience, which includes winning a prestigious prize in

To develop what you believe is a terrific idea for a video game, you lease 50,000 square feet in an office building from Commercial Property, LLC, under a written five-year lease. Your goal is to put the game on the market within two years. Several months into the term, a competitor unexpectedly releases a new game title featuring play that would make your game appear to be a poorly crafted imitation. Can you assign the lease to another party? Explain.

To develop what you believe is a terrific idea for a video game, you lease 50,000 square feet in an office building from Commercial Property, LLC, under a written five-year lease. Your goal is to put the game on the market within two years. Several months into the term, a competitor unexpectedly releases a new game title featuri

Ann leases an office in Ted's building for a one-year term. At the end of the period specified in the lease, the lease ends without notice, and possession of the office returns to Ted. If Ann dies during the period of the lease, what happens to the leased property?

Ann leases an office in Ted's building for a one-year term. At the end of the period specified in the lease, the lease ends without notice, and possession of the office returns to Ted. If Ann dies during the period of the lease, what happens to the leased property?

Financial Statements, ROI, Varainaces & Manufacturing

See attachment for details. 1. Williams, Inc. currently sells 20,000 units of its product per year for $200 each. Variable costs total $75 per unit. Williams' manager believes that if a new machine is leased for $250,000 per year, modifications can be made to the product that will increase its retail value. These modification

Accounting: Leases, pensions, equity, multiple entities

Answer each question with references; references have to be work citied within the paragraphs. 1. Assess the current accounting practices regarding leases and make a recommendation for improvement. 2. Assess the current accounting practices regarding pensions and make a recommendation for improvement. 3. Assess th

Discuss the following cost recovery questions: Whether property that is classified as personal is subject to cost recovery. If a taxpayer does not take any cost recovery on an asset during the year, what will be the impact on the basis of the asset? The computation of cost recovery in the year an asset is placed in service when the half-year convention is used. Whether the acquisition of real property affects the 40% test to determine whether the mid-quarter convention must be used. 2. Discuss the following cost recovery questions: The definition of taxable income as it is used in limiting the Section 179 expensing amount. The implications of an automobile used in a trade-or-business having a gross vehicle weight exceeding 6,000 pounds. The purpose of the lease inclusion amount and explain how it is determined with respect to leased passenger automobiles. The amortization period of a Section 197 intangible if the actual useful life is less than 15 years. 3. Lyle and Joan are married and file a joint return for the year. Both incur work-related expenses that are not reimbursed. If Lyle is employed and Joan is self-employed, how should the expenses be handled for tax purposes? 4. In connection with the office in the home deduction, comment on the following factors: Taxpayer claims the standard deduction The office is also used to pay personal bills The expenses exceed the income from the business Taxpayer rents rather than owns, the home 5. Comment on the deductibility of each of the following items; Expenses incurred by taxpayer, a member of the New Mexico National Guard, to participate in a three-day training session conducted in Texas. Dues to a teamster's union paid by a truck driver Computer supplies purchased by a college professor for use in the graduate seminars she teaches Fee paid to take the state bar exam. Taxpayer is employed as a paralegal by a law firm.

1. Discuss the following cost recovery questions: Whether property that is classified as personal is subject to cost recovery. If a taxpayer does not take any cost recovery on an asset during the year, what will be the impact on the basis of the asset? The computation of cost recovery in the year an asset is placed in

Accounting Appendix

Hall, Inc. agrees to lease equipment from White Inc. for 10 years for $50,000 at the end of each year. The equipment has a fair value of $350,000 and an estimated useful life of 10 years. The lease includes a guaranteed residual value of $20,000. In addition to the lease payments, Hall will pay $10,000 per year for a maintenance

Forecast an Income Statement, Balance Sheet, Cash Flows, Shares

Please see attachment for proper format, and provide examples of solving it. 1. Forecasting an Income Statement Abercrombie & Fitch? reports the following income statements. Income Statement, For Fiscal Years Ended ($ thousands) 2008 2007 Net sales $3,657,847 $3,318,158 Cost of goods sold 1,238,480

On December 31, 2009, Cathy Chen, a self-employed certified public accountant (CPA), completed her first full year in business. During the year, she billed $360,000 for her accounting services. She had two employees: a bookkeeper and a clerical assistant. In addition to her monthly salary of $8,000, Ms. Chen paid annual salaries of $48,000 and $36,000 to the bookkeeper and the clerical assistant, respectively. Employment taxes and benefit costs for Ms. Chen and her employees totaled $34,600 for the year. Expenses for office supplies, including postage, totaled $10,400 for the year. In addition, Ms. Chen spent $17,000 during the year on tax-deductible travel and entertainment associated with client visits and new business development. Lease payments for the office space rented (a tax- deductible expense) were $2,700 per month. Depreciation expense on the office furniture and fixtures was $15,600 for the year. During the year, Ms. Chen paid interest of $15,000 on the $120,000 borrowed to start the business. She paid an average tax rate of 30% during 2009. a. Prepare an income statement for Cathy Chen, CPA, for the year ended December 31, 2009. b. Evaluate her 2009 financial performance.

On December 31, 2009, Cathy Chen, a self-employed certified public accountant (CPA), completed her first full year in business. During the year, she billed $360,000 for her accounting services. She had two employees: a bookkeeper and a clerical assistant. In addition to her monthly salary of $8,000, Ms. Chen paid annual salaries

Financial Statement Analysis for Apple, Inc

Analyze the financial statements of a publicly traded company. Obtain an annual report from a publicly traded corporation that is interesting to you. Be sure the company has property and equipment, intangible assets, and long-term debt on their balance sheet. Using techniques you have learned, respond to the following questio

Lease Analysis and Merger Questions

See the attached file. Capital Budgeting 1. What is a sale and lease back and why would a corporation do this? 2. Why might a lease be easier to finance (or do) than a straight borrowing for the purchase of an asset? Explain two reasons 3. When should the cancellation provision be negotiated (before or after the le