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Phillip Morris (Altria) 2009 Annual Report Analysis

a. What is the composition of Phillip Morris' total long-term liability in current year? b. What is the Phillip Morris' Debt to Equity Ratio for current year and prior year? What does it express? Please show details for the numerator and denominator to receive full credit. c. What is the Phillip Morris' Times Interest Earned

Evaluating Decision-Making Scenarios Using Linear Profit and Cost Modeling

Please see attached file for questions. Vintage Cellars Vintage Cellars manufactures a 1,000-bottle wine storage system that maintains optimum temperature (55-57 °F) and humidity (50-80%) for aging wines. The system has a backup battery for power failures and can store red and white wines at different temperatures. The fo

sales-type lease

Sales-type leases and direct financing leases are two of the classifications of leases described in FASB codification, from the standpoint of the lessor. Compare and contrast a sales-type lease with a direct financing lease as follows: Gross investment in the lease. Amortization of unearned interest income. Manuf

Managerial finance multiple choice questions

Problem: A currency trader observes the following quotes in the spot market: 1 U.S. dollar = 10.875 Mexican pesos 1 British pound = 3.955 Danish kro ...there is moreshow problem A currency trader observes the following quotes in the spot market: 1 U.S. dollar = 10.875 Mexican pesos 1 British pound = 3.955

Breakeven analysis and Degree of Operating leverage

See attachment. 1. Breakeven Analysis. The Midtown Filling Station is a gasoline retailer in Denton, Texas. Louie DePalma, proprietor of Midtown, has decided to prepare a financial analysis of the potential of a 24-hour convenience store operation. Opening such a center would require remodeling the filling station and the h

Lessee Entries and Balance Sheet Presentation; Capital Lease

January 1, 2008 Doss Company contracts to lease equipment for 5 years, agreeing to make a payment of $94,732 (including the executory costs of 6,000 a year) at the beginning of each year, starting January 1, 2008. The taxes, the insurance, and the maintenance, estimated at $6000 per year, are the obligations of the lessee. The

Lease or Buy Problem

Sandia Meadows, Inc wants to install $2.8 million of new equipment to update its ski lifts. The company can obtain a bank loan for 100% of the purchase price or it can lease the equipment. Assume the following: .The machinery falls into the MACRS 3 year class .Estimated maintenance expenses are $90k per year, payable at the

Finance: Beryl's Iced Tea machine, continue to rent, buy, buy new machine

Beryl's Iced Tea currently rents a bottling machine for $50,000 per year, including all maintenance expenses. It is considering purchasing a machine instead, and is comparing two options: a. Purchase the machine it is currently renting for $150,000. This machine will require $20,000 per year in ongoing maintenance expense.

Determining the present value of the lease

On January 1, 2010, Hershey Co. leased a machine for 5 years at an annual rental of $64,000, payable on the date of signing the lease and each December 31 thereafter. The machine has an estimated useful life of 8 years and no salvage value. Hershey Co. has an option to purchase the machine for $1at the end of the lease. The mark

Journal entries - noncancellable lease agreement (Carey, Inc.)

On January 1, 2010, Carey, Inc., entered into a noncancellable lease agreement, agreeing to pay $5,857 at the end of each year for 2 years to acquire a new computer system having a market value of $9,900. The expected useful life of the computer system is also 2 years, and the computer will be depreciated on a straight-line basi

IFRS: lease classification

IFRS: lease classification Airway leasing entered into an agreement to lease aircraft to Ouachita airlines. Consider each of the following a-e to be independent scenarios. A: The agreement calls for ownership of the aircraft to be transferred to Ouachita Airlines at the end of the lease term. B: the fair value of the aircraft

Prepare a Statement of Cash Flows

6-10. The Village of Parry reported the following for its Print Shop Fund for the year ended April 30, 2009. VILLAGE OF PARRY-PRINT SHOP FUND Statement of Revenues, Expenses, and Changes in Net Assets For the Year Ended April 30, 2009 Operating revenues: Charges for services $1,000,000 Operating expenses: Salaries a

Accounting Treatment for Operating Lease

Maris Co. purchased a machine on January 1, 2011, for $1,000,000 for the express purpose of leasing it. The machine is exprected to have a five-year life, no salvage value, and be depreciated in a straight line monthly basis. On April 1, 2011, under a cancelable lease, Maris leased the machine to Dunbar Company for $300,000 a

WACC, Projected Dividends, Borrowing Cost, NAL, Equipment Lease

PROBLEM SETS: PLEASE SHOW ALL WORK IN EXCEL & EXPLAIN INPUT VARIABLES. 1. ABC has an unleveraged required return of 45%. ABC rebalances its capital structure each year to a target of L = .55. T* = .15. ABC can borrow currently at a rate of rd = 11%. What is ABC's WACC? 2. ABC has made a bundle selling software and has be

Recording Lease as Capital Lease

Snappy Corporation enters into a lease agreement with Long Leasing. Long requires that the lease qualify as a sale. Snappy can fill this requirement by either guaranteeing the residual value itself or having a third party guarantee the residual value. Self-guarantee of the residual value will result in a capital lease to Snappy.

Practice Problem

Problem 9-10 Contingent Liabilities Several items are listed for which the outcome of events is unknown at year-end. a. A company offers a two-year warranty on sales of new computers. It believes that 4% of the computers will require repairs. b. The company is involved in a trademark infringement suit. The company's legal exp

Off balance sheet finance as a financial reporting practice is unethical

Reasons and justifications for the extensive use of Off-Balance-Sheet Financing in financial reporting . How does off balance sheet finance exactly work? Give examples. Even though SPE's are legal ways of setting up partnerships, how was the way Enron used them highly unethical? How has IAS 10 IAS37 or other account

Financial Accounting Explanations

1. Note: The following problem requires present value information On January 1, 2006, Price Corporation signed a five-year noncancelable lease for certain machinery. The terms of the lease called for: a. Price to make annual payments of $60,000 at the end of each year (starting Dec. 31, 2006) for five years. Price must r

Business Law Cases Entity of Love

PART I Love leaves her job as manager of a local restaurant because she wants to start her own restaurant. She finds an ideal location to lease on West Lake Street in the Uptown Area of Minneapolis. All she needs is the initial start up capital to make leasehold improvements, buy the initial inventory of food and beverages, an

Match the terms with the correct definitions

Match the term with the correct definition Definition A The plan of organization and all the related methods and measures adopted within a business to safeguard its assets and enhance the accuracy and reliability of its accounting records. B Law that forces companies to pay more attention to internal control. C Compan

Louis leased a building to Pam for five years at a rental of $1,000 per month

1. Louis leased a building to Pam for five years at a rental of $1,000 per month; Pam deposited $10,000 as security for performance of all her promises in the lease, which was to be retained by Lois in case of any breach on Pamâ??s part. Pam defaulted in the payment of rent for the last two months of the lease. Lois refused to

Lease or buy

20-2 The Beranek Company, whose stock price is now $25, needs to raise $20 million in common stock. Underwriters have informed the firm's management that they must price the new issue to the public at $22 per share because of the signaling effects. The underwriters' compensation will be 5% of the issue price, so Beranek will n

Accounting: 41 Multiple choice questions

You are trying to determine which of two companies is the most profitable. Which of the following would be the best indicator of relative profitability? A) highest net income B) highest retained earnings C) highest return on equity D) highest income from continuing operations 2. Which of the following woul

Cost Allocations and Absorption Cost

Problem 7-8 "Winterton Group" The Winterton Group is an investment advisory firm specializing in high-income investors in upstate New York. Winterton has offices in Rochester, Syracuse, and Buffalo. Operating as a profit center each office receives central services, including information technology, marketing, accounting, and p

Lease vs. Buy

In the lease versus buy decision, leasing is often preferable a. because it has no effect on the firm's ability to borrow to make other investments. b. because, generally, no down payment is required, and there are no indirect interest costs. c. because lease obligations do not affect the firm's risk as seen by

Contribution margin income statement and contribution margin ratio

The following costs result from the production and sale of 2,000 drums sets manufactured by Harris Drum Company for the year ended December 31, 2009. The drum sets sell for $500 each. The company has a 25% income tax rate. 1. Prepare a contribution margin income statement for the company. 2. Compute its contribution marg