ACC - Assuming an interest rate of 5%
Question # 00054167
Posted By:
Updated on: 03/09/2015 11:50 PM Due on: 03/18/2015
1. Assuming an interest rate of 5%, compute the present value of the operating lease commitments on January 31, 2014. Show all calculations for credit.
2. Did Wal-Mart report a liability for its operating lease on January 31, 2014 balance sheet? By how much?
2. Did Wal-Mart report a liability for its operating lease on January 31, 2014 balance sheet? By how much?
3. Did Wal-Mart report a liability for its capital lease on January 31, 2014 balance sheet? By how much?
4. Did Wal-Mart report an asset for its operating lease on January 31, 2014 balance sheet? By how much?
5. Did Wal-Mart report an asset for its capital lease on January 31, 2014 balance sheet? By how much?
6. Calculate the Liabilities to Assets ratio and Long-term Debt Ratio for Wal-Mart as of January 31, 2014, using the amounts originally reported in its balance sheet for the year.
7. Assuming that Wal-Mart was required to capitalize its operating lease, calculate the company’s 2014’s Liabilities to Assets ratio and Long-term Debt Ratio.
8. Comment on the results from part 6 and 7.
4. Did Wal-Mart report an asset for its operating lease on January 31, 2014 balance sheet? By how much?
5. Did Wal-Mart report an asset for its capital lease on January 31, 2014 balance sheet? By how much?
6. Calculate the Liabilities to Assets ratio and Long-term Debt Ratio for Wal-Mart as of January 31, 2014, using the amounts originally reported in its balance sheet for the year.
7. Assuming that Wal-Mart was required to capitalize its operating lease, calculate the company’s 2014’s Liabilities to Assets ratio and Long-term Debt Ratio.
8. Comment on the results from part 6 and 7.
-
Rating:
/5
Solution: ACC - Assuming an interest rate of 5% (Sol)