User Account

All Pages

Prepare an income statement under the new lease rules

Assignment Help Accounting Basics
Reference no: EM131600902

Case Study: Treatment of Leases-Current VS. New Lease Requirements and the Impact on Financial Ratios

QUESTIONS -

1. Describe the different reporting results and make the necessary adjusting entries to conform the financial statements to the new lease rules compliance for 2012.

2. In answering the following parts, keep in mind companies usually prefer to report higher net income and higher cash from operating activities (although accounting research has identified exceptions to this).

A. Prepare an income statement under the new lease rules for 2012.

B. Prepare balance sheet under the new lease rules on December 31, 2012.

C. Prepare a cash flow statement under the new lease rules for 2012.

3. Compute the following ratios for 2012, under both the current GAAP reporting lease rules and the new lease rules:

Current Ratio

Quick Ratio

Cash Ratio

Times Interest Earned

Debt to Capital Ratio

Debt to Shareholder Equity Ratio

Attachment:- CASE STUDY.rar

Reference no: EM131600902

Questions Cloud

Describe how the hotline will work : What is the background of the problem?What will be the outcome of the project? Describe how the hotline will work.
Explain why there has been disagreement between theorists : explain why there has been disagreement between theorists about the definition of global citizenship and develop your own definition of global citizenship.
Which is a perimeter and which is a statistic : A study is conducted and the people in the study, 43% of their annual income on housing. Which is a perimeter and which is a statistic?
Cartel collapses through cheating-consumers or producers : Who gets the benefit when a cartel collapses through cheating: consumers or producers? Does this benefit show up in a lower price, a higher quantity.
Prepare an income statement under the new lease rules : Prepare an income statement under the new lease rules for 2012. Prepare balance sheet under the new lease rules on December 31, 2012
Discuss distinguish between positive and negative stress : Distinguish between positive and negative stress. Submitted in text. Note- you may also submit an attachment to preserve your original formatting.
Create a literature review : Create a literature review, incorporating each of your references (minimum of five), tying them to each other and to the thesis of your project .
What are the community or environmental challenges : Parkinson's Disease (4 years post diagnosis): You are a 45 year old male living with your wife and 2 teenage sons in Blackwater in Central Queensland.
Causes the lags in the effect of monetary : Consider what causes the lags in the effect of monetary and fiscal policy on aggregate demand. What are the implications of these lags for the debate.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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