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U.S. dollars [thousands] Yen {millions} {note 2] 2010 2009 2010 Liabilities and Equity Current liabilities: Bank loans (note 7} 71,022 206,520 5
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The following, Note 7 indicates that ME includes certain capital lease obligations in its long-term debt. Capital lease obligations (also called finance lease obligations) are accounted for as though the company purchased an asset and borrowed funds for the purchase

1. Assume that one of ME's capital leases requires the company to make five payments of ¥1,000 on March 31st each year beginning on March 31, 2011. What is the present value of these lease payments on March 31, 2010 if the appropriate discount (i.e., interest) rate is 7%?

2. Assume that another of ME's capital leases requires the company to make ten payments of ¥1,200 on March 31st each year beginning on March 31, 2015. What is the present value of these lease payments if the appropriate discount (i.e., interest) rate is 7%? Hint: Drawing a timeline that lays out the cash flows will make this analysis easier.

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homework 1.png
U.S. dollars [thousands]
Yen {millions} {note 2]
2010 2009 2010 Liabilities and Equity Current liabilities: Bank loans (note 7} ¥ 71,022 ¥ 206,520 5 163,677
Current portion of long-term debt (notes 7", 18, and 21} 57,92? 104,362 623,409
Tracie payables (notes 6 and B} 633,620 612,129 6,813,656
Accrued expenses (note 17} 356,104 344,646 3,835,527
Accrued income taxes [note 9} 23,113 24,494 249,226
Other current liabilities {notes 10, 15 and 19} 124,358 120,359 1,332,132
Total current liabilities 1,266,909 1,413,015 13,622,627
Long-term debt {notes 7', 13 and 21] 403,501 366,977 4,392,484
Retirement and severance benefits [note 10] 453,263 595,478 4,932,935
Other liabilities {notes 9, 15, 17 and 19} 59,121 56,713 642,226
Total liabilities 2,193,900 2,432,183 23,590,322
homework 2.png
(7) BANK LOANS AND LONG-TERM DEBT
Bank loans consisted of the following:
U.S. dollars
Yen (millions)
(thousands)
2010
2009
2010
Borrowings from banks and others
* 70,652
66,090
$ 759,699
Commercial paper
370
140,430
3,978
* 71,022
206,520
$ 763,677
The weighted average interest rates on borrowings from
At March 31, 2010, the Company had unused committed
banks and others outstanding as of March 31, 2010 and
lines of credit that can provide short-term funds from
2009 were 0.97% and 1.48%, respectively.
subscribing financial institutions amounting to Y114,000
million ($1,225,806 thousand).
Long-term debt consisted of the following:
U.S. dollars
Yen (millions)
(thousands)
2010
2009
2010
Borrowings from banks and other companies,
due 2010 to 2021 with bearing interest rate
ranging from 0.53% to 8.91% at March 31, 2010:
due 2009 to 2025 with bearing interest rate
ranging from 0.55% to 8.91% at March 31, 2009:
Secured
1,312
827
$
14,107
Unsecured
301,492
286,347
3,241,849
1.76% Japanese yen bonds due 2011
25,000
25,000
268,817
1.09% Japanese yen bonds due 2009
15,000
1.70% Japanese yen bonds due 2012
10,000
10,000
107,527
0.55% Japanese yen bonds due 2009
30,000
1.09% Japanese yen bonds due 2009
30,000
1.40% Japanese yen bonds due 2012
40,000
40,000
430,108
1.17% Japanese yen bonds due 2014
30,000
322,581
0.58% Japanese yen bonds due 2013
30,000
322,581
Capital lease obligations
28,674
34,170
308,323
466,478
471,344
5,015,893
Less amount due within one year
57,977
104,367
623,409
* 408,501
X 366,977
$ 4.392,484
The aggregate annual maturities of long-term debt outstanding at March 31, 2010 were as follows:
U.S. dollars
Year ending March 31
Yen (millions)
(thousands)
2011
Y
57,977
S
623,409
2012
136,532
1,468,086
2013
83,690
899,892
2014
95,379
1,025,581
2015
32,422
348,624
Thereafter
60,478
650,301
Total
X 466.478
S 5,015,893

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