Assets and liabilities for the unrecorded operating leases

Assignment Help Financial Accounting
Reference no: EM13532006

The Canadian National Railway Company"s (CN) total assets in a recent year were $24,004 million and its total liabilities were $14,180 million. That year, CN reported operating lease commitments for its locomotives, freight cars, and equipment totalling $740 million. If these assets had been recorded as capital leases, assume that assets and

liabilities would have risen by approximately $740 million.

(a) Calculate CN"s debt to total assets ratio, first using the figures reported, and then after increasing assets and liabilities for the unrecorded operating leases.

(b) Discuss the potential effect of these operating leases on your assessment of CN"s solvency.

Reference no: EM13532006

Questions Cloud

Estimate the suns rotational period when it is that size : When our sun runs out of fuel, it will eventually become a white dwarf star with about the same radius as the earth. Estimate the sun's rotational period when it is that size
Dave jones manages the warehouse inventory for athleticks : Mr. Dave Jones manages the warehouse inventory for Athleticks
Working capital and current ratio : Compute the values and provide a brief interpretation of each working capital and current ratio.
Compute how much work is done on toboggan by tension force : A person pulls a toboggan for a distance of 50.0 m along the snow with a rope directed 25.0° above the snow. The tension in the rope is 78.0 N. How much work is done on the toboggan by the tension force
Assets and liabilities for the unrecorded operating leases : Calculate CN's debt to total assets ratio, first using the figures reported, and then after increasing assets and liabilities for the unrecorded operating leases.
Mechanisms of gene regulation in a eukaryoteorganism : Describe how the information encoded by a length of DNA is used tobuild proteins in a eukaryotic cell. What are two mechanisms of gene regulation in a eukaryoteorganism.
Estimate the beads acceleration : Using focused laser light, optical tweezers can apply a force of about 14pN to a 1.1\mu m diameter polystyrene bead, Estimate the bead's acceleration in g's
Prepare the journal entry to record the sale : Prepare the journal entry to record the sale of these bonds on January 1, 2012 and Prepare the journal entry to record interest expense and bond discount amortization on December 31, 2012, assuming no previous accrual of interest.
Errors equally distributed between positive-negative errors : Were your errors equally distributed between positive and negative errors? Was your PSE more accurate for the second setof 20 trials? What might account for this?

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd