ACCY 3106 Homework 9 - Ninth Homework 1 Using General Electrics financial statements calculate the value of inventory and cost of goods sold that GE

ACCY 3106 Homework 9 - Ninth Homework 1 Using General...

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Ninth Homework 1. Using General Electric’s financial statements, calculate the value of inventory and cost of goods sold that GE would report if it used FIFO instead of LIFO for 2012. 2. Calculate GE’s inventory turnover ratio using LIFO and FIFO for 2012 3. (a) This question relates to Best Buy’s operating leases. Calculate the value of the lease assets and lease liabilities that would be included on Best Buy’s balance sheet if the operating leases were treated as capital leases instead of operating leases. Ignore other types of leases in answering this question. Assume that the appropriate discount rate is 7%. Assume that the lease payments for 2019-23 are $594,000,000; 500,000,000; 400,000,000; 300,000,000 and 200,000,000 respectively. (b) Calculate the total liabilities to shareholders’ equity ratio using the reported results for Best Buy before and after capitalizing the operating leases. (c) Calculate the interest expense for 2014 and 2015.

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