Ch09 - Student Name: Class: Problem 09-10 MANSFIELD...

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Student Name: Class: Problem 09-10 MANSFIELD CORPORATION Requirement 1: GAAP depreciation Tax depreciation Book Value: 2011 2012 GAAP Tax GAAP Tax Cost Acc. Depreciation Book Value Deferred tax liability 2011: Deferred tax liability 2011: Is the deferred income tax a liability or an asset? Explain: Requirement 2: Income Tax Expense 2011 2012 Taxes payable Deferred taxes Income tax expense
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Given P09-10 MANSFIELD CORPORATION Cost of new warehouse $1,000,000 Expected life in years 20 Percentage of cost for accelerated depreciation 10% Marginal federal income tax rate 34% Income tax obligations: 2011 $400,000 2012 $625,000
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Student Name: Class: Problem 09-11 BOSTON COMPANY Requirement 1: Present value of debt: Principal Interest payment Total debt Requirement 2: Single sum amount: Interest revenue: Requirement 3: Present value of severance obligation: Year one Year two Year three Total Requirement 4: Equal annual payments: Interest expense:
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Given P09-11 BOSTON COMPANY January 1, 2011 transactions (7% annual interest rate applied to all transactions) a. Amount borrowed $115,000 Term in years 7 Interest paid at end of each year $8,050 Year principal repaid 7 b. Plant addition fund established $490,000 Year funds available 8 Funds deposited on January 1, 2011 ? c. First year severance paid $75,000 Second year severance paid $112,500 Third year severance paid $150,000 d. Cost of machine purchased $170,000 Cash paid $40,000 Term of remaining note in years 5
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Student Name: Class: Problem 09-12 Present Value of Prize Options: Option 1: Option 2: Option 3: Which option is preferred and why:
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Given P09-12 Prize Options: Amount of prize award $12,500,000 Option 1: Annual receipt 1,250,000 Number of years 10 Option 2: Instant receipt 10,000,000 Option 3: Instant receipt 2,000,000 Annual receipt thereafter 1,000,000 Number of years 10 Reasonable rate of return 10%
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Student Name: Class: Problem 09-13 MERCURY COMPANY Requirement 1: Amount of equal annual deposits: Requirement 2: Interest earned over full term: Requirement 3: Interest earned each period: 1st year 2nd year 3rd year 4th year Total interest revenue
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Given P09-13 MERCURY COMPANY Principal amount of debt $120,000 Date debt due 12/31/2014 Number of annual deposits to fund 4 Annual interest rate 7%
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CP9-3 Comparing Companies within an Industry Required: 1. Compute the quick ratio for each company for the current year. 2. 3. Compute the payable turnover ratio for each company for the most recent reporting year. 4. 5. This workbook is organized as follows: Sheet Name Contents CP9-3 (this worksheet) CP9-3 Problem Requirements and Workbook Layout Industry Ratio Report American Eagle Outfitters, Inc. Consolidated Balance Sheets American Eagle Outfitters, Inc. Consolidated Statements of Operations American Eagle Outfitters, Inc. Consolidated Statements of Stockholders' Equity American Eagle Outfitters, Inc. Consolidated Statements of Cash Flows Urban Outfitters, Inc. Consolidated Balance Sheets Urban Outfitters, Inc. Consolidated Statements of Income
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This note was uploaded on 11/05/2011 for the course AEM 2210 at Cornell.

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Ch09 - Student Name: Class: Problem 09-10 MANSFIELD...

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