16–21 Solutions
16.4 continued.
l. First 6 Months: .025 X $1,104,650.00 ………………………… $ 27,616.25
m. Interest Expense ………………………………………………. 20,996
Assets
=
Liabilities
+
Shareholders’
Equity
(Class.)
–40,000
–19,004
–20,996
IncSt → RE
To record mortgage interest and principal payment;
$20,996 = .07 X ($262,564 + $37,383).
n. Present Value of Payment on January 1, 2009 ……………………. $ 10,000
o. Capitalized Lease Obligation, December 31, 2008 ………………. $ 62,064
p. Income Tax Expense …………………………..……………. 150,000
Assets
=
Liabilities
+
Shareholders’
Equity
(Class.)
+135,000
–150,000
IncSt → RE
+15,000
q. Income Tax Payable—Current, December 31, 2008 …………… $ 140,000
Provision for Current Taxes Payable (See Part
p
.) ……………… 135,000
Solutions 16–22
Cash payments for income taxes during 2009 were $115,000.
16–23 Solutions
16.4 continued.
Assets
=
Liabilities
+
Shareholders’
Equity
(Class.)
–500,000
ContriCap
+250,000
ContriCap
+250,000
ContriCap
To record conversion of preferred into common stock.
t. Treasury Stock …………………………………………………. 8,800
Assets
=
Liabilities
+
Shareholders’
Equity
(Class.)
–8,800
–8,800
ContriCap
To record purchases of treasury stock.
Cash ……………………………………………………………….. 25,200
Assets
=
Liabilities
+
Shareholders’
Equity
(Class.)
+25,200
+21,600
ContriCap
+3,600
ContriCap
To record the sale of treasury stock.
bAdditional Paid-in Capital on December 31, 2008 …………….. $ 130,000
Plus Amount Arising from Conversion of Preferred
Solutions 16–24
16–25 Solutions
16.5 (Scania, Inc.; recasting financial statements to proposed reporting format.)
a. Schedule 16.1
SCANIA, INC.
Business Assets and Liabilities
Short-Term Investments Comprising
Cash and Cash Equivalents …………… 8,808 493
Short-Term Operating Liabilities
:
Current Interest-Bearing Liabilities …….. SEK (16,350) SEK (9,351)
Current Provisions …………………………... (1,125) (962)
Accrued Expenses and Deferred
Total Short-Term Operating
Liabilities ………………………………….. SEK (33,157) SEK (24,664)
Long-Term Operating Assets:
Intangible Noncurrent Assets ……………. SEK 2,464 SEK 2,698
and Joint Ventures ………………………… 173 96
Long-Term Interest-Bearing Receiv-
ables …………………………………………… 16,599 15,543
Solutions 16–26
16–27 Solutions
16.5 a. continued.
Net Short-Term and Long-Term Oper-
Financing
Noncurrent Interest-Bearing Liabil-
ities ……………………………………………….. SEK (17,918) SEK (19,323)
Income Taxes
Long-Term Other Tax Liabilities …………… (170) (195)
Total Income Tax Assets, Net …………. SEK (2,341) SEK (2,209)
Net Assets and Liabilities ……………………. SEK 26,134 SEK 23,736
Equity
Hedge Reserve …………………………………. 87 (83)
Accumulated Exchange Rate Differ-
Solutions 16–28
16.5 continued.
b. Schedule 16.2
SCANIA, INC.
Recast Statement of Comprehensive Income
(Amounts in Millions)
Year Ended December 31: 2006 2005 2004
Business Income
Expenses:
Share of Income of Asso-
ciated Companies and
Joint Ventures ……………. 5 8 8
Interest and Depreciation
Operating Income:
Customer Finance ………….. SEK 493 SEK 529 SEK 450
Other Financial Income ……… SEK 142 SEK 299 SEK 96
Other Financial Expense ……. (81) (206) (127)
Income Taxes
16–29 Solutions
Minority (Noncontrolling)
Interest …………………………. 0 0 (2)
Scania Shareholders’
Solutions 16–30
16.5 b. continued.
Other Comprehensive
Income:
c. Schedule 16.3
SCANIA, INC.
Recast Statement of Cash Flows
(Amounts in Millions)
Year Ended December 31: 2006 2005 2004
Business Cash Flows
Operating Cash Flows
Cash Collected from
Share of Income in Associ-
ated Companies and
Joint Ventures ……………. 5 8 8
Investments in Credit
16–31 Solutions
Solutions 16–32
16.5 c. continued.
Cash Disbursed for Other
Operating Expenses:
Research and Develop-
Expense: Customer
Selling and Administrative
Expenses: Customer
Finance ………………………… (416) (374) (318)
Bad Debt Expense ……………. (63) (80) (89)
Other Expenses ……………….. (179) (138) (132)
Plus Items Not Affecting
Plus Increase (Less De-
crease) in Other Liabil–
ities and Provisions …….. 1,126 (731) 356
Cash Received (Repaid)
Investing Cash Flows
Cash Received from Invest-
ments (Net):
Other Financial Income …… SEK 142 SEK 299 SEK 96
16–33 Solutions
Other Financial Expense …. (81) (206) (127)
Cash Disbursed for Short-
Term Investments Com-
Solutions 16–34
16.5 c. continued.
Financing Cash Flows
Cash Disbursed for Interest
Expense ……………………….. SEK (863) SEK (866) SEK (638)
Change in Debt Financing ….. 7,591 62 (1,264)
Less Change in Current
Operating Borrowing ………. (8,827) (912) 207
16.6 (Wal-Mart Stores; recasting financial statements to proposed reporting
format.)
a. Schedule 16.4
WAL-MART STORES
Statement of Financial Position under the
Proposed Statement Format
(Amounts in Millions)
Fiscal Year Ended January 31: 2008 2007
Business Assets and Liabilities
16–35 Solutions
Other Current Liabilities ………………………….. (15,799) (14,675)
Solutions 16–36
16.6 a. continued.
Long-Term Operating Assets
:
Property, Plant and Equipment (Net) ………… $ 105,903 $ 94,512
Other Long-Term Operating Assets ………….. 16,188 13,228
Total Long-Term Operating Assets ……….. $ 122,091 $ 107,740
Financing
Short-Term Financing Liabilities:
Notes Payable ……………………………………….. $ (5,040) $ (2,570)
Current Portion of Long-Term Debt …………… (6,229) (5,713)
Long-Term Financing Liabilities:
Long-Term Debt …………………………………….. (42,288) (36,807)
Total Financing Liabilities …………………….. $ (53,557) (45,090)
16–37 Solutions
16.6 continued.
b. Schedule 16.5
WAL-MART STORES
Statement of Comprehensive Income under the
Proposed Reporting Format
(Amounts in Millions)
Fiscal Year Ended
January 31: 2008 2007 2006
Business Income
Sales Revenue …………………. $ 374,526 $ 344,992 $ 308,945
Other Revenues ……………….. 4,578 3,938 3,398
Cost of Goods Sold …………… (286,515) (264,152) (237,649)
Selling, General and Admin-
istrative Expenses ………….. (70,694) (64,426) (56,063)
Operating Income …………….. $ 21,895 $ 20,352 $ 18,631
tion Adjustment ………………. $ 1,218 $ 1,584 $ (1,691)
Pension Liability ……………….. 138 (15) (1)
Derivatives ………………………. 0 6 51
Adoption of FASB
State-
Solutions 16–38
16.6 continued.
c. Schedule 16.6
WAL-MART STORES
Statement of Cash Flows under the
Proposed Reporting Format
(Amounts in Millions)
Fiscal Year Ended
January 31: 2008 2007 2006
Business Cash Flows
Operating Cash Flows
:
Cash Receipts from Cus-
tomers ………………………. $ 373,962 $ 344,778 $ 308,489
Cash Received from Other
Revenues ………………….. 4,578 3,938 3,398
Cash Disbursed for
Investing Cash Flows
:
Total Investing Cash
Flows …………………….. 0 0 0
16–39 Solutions
16.6 c. continued.
Financing Cash Flows
Cash Disbursed for Interest
Expense ……………………….. $ (1,622) $ (1,553) $ (1,390)
Cash Received (Disbursed)
for Short-Term Debt ……….. 2,376 (1,193) (704)
Cash Received from Long-
Term Debt …………………….. 11,167 7,199 7,691
Cash Disbursed to Repay
Equity Cash Flows
Cash Disbursed for
Dividends………………………. $ (3,586) $ (2,802) $ (2,511)
Cash Disbursed to Repur-
chase Common Stock …….. (7,691) (1,718) (3,580)