Question : 76. State CorporationBelow a note Disclosure of Leases for the State : 1224946

 

76. State CorporationBelow is a note on Disclosure of Leases for the State Corporation.The State Corporation leases office, warehouse and showroom space, retail stores and office equipment under operating leases, which expire no later than 2027. The Corporation normalizes fixed escalations in rental expense under its operating leases. Minimum annual rentals under non-cancelable operating leases, excluding operating cost escalations and contingent rental amounts based upon retail sales, are payable as follows:Fiscal year ending March 31, 

2013

$10,051,000

2014

11,121,000

2015

10,161,000

2016

9,063,000

2017

8,814,000

Thereafter

46,681,000

 

 

Rent expense was $12,551,000; $8,911,000; and $5,768,000 for the years ended March 31, 2012, 2011, and 2010, respectively. Refer to the information provided for State Corporation. What are the two types of leases that a company can have? Describe each briefly.

77. State CorporationBelow is a note on Disclosure of Leases for the State Corporation.The State Corporation leases office, warehouse and showroom space, retail stores and office equipment under operating leases, which expire no later than 2027. The Corporation normalizes fixed escalations in rental expense under its operating leases. Minimum annual rentals under non-cancelable operating leases, excluding operating cost escalations and contingent rental amounts based upon retail sales, are payable as follows:Fiscal year ending March 31, 

2013

$10,051,000

2014

11,121,000

2015

10,161,000

2016

9,063,000

2017

8,814,000

Thereafter

46,681,000

 

 

Rent expense was $12,551,000; $8,911,000; and $5,768,000 for the years ended March 31, 2012, 2011, and 2010, respectively. Refer to the information provided for State Corporation. Does the note disclosure show evidence of the two types of leases?

78. On January 1, 2012, Hawkeye Corporation issued $5,000,000 of 8% bonds, due in five years with interest payable annually on December 31. The market rate is 9 percent. Calculate the present value (market value) of the bonds.

 

 

 

 

 

 

 

 

 

 

 

79. Use the following selected financial information to compare these two companies at December 31, 2012, and to answer the questions that follow. 

 

Sweet Co.

Sour Co.

Cash

$  1,100

$     300

Short-term investments

100

900

Accounts and notes  receivable

11,700

12,400

Inventories

1,200

1,000

Prepaid expenses

1,400

600

 

Total current assets

15,500

15,200

 

 

 

Total current liabilities

5,000

4,000

Long-term liabilities

12,300

12,000

Stockholders’ equity

5,300

7,300

 

 

 

 

 

Compute the current ratios for the two companies.