(c) Dell’s long-term debt is rated Baa1 by Moody’s, BBB+ by S&P, and BBB+ by Fitch. What factors would be important to consider in attempting to quantify the relative riskiness of Read more…

(b) Dell reported $270 million in interest expense in the notes to its 2013 income statement. In the note to its statement of cash flows, Dell indicates that the cash portion of Read more…

Why is information relating to a company’s scheduled maturities of debt useful in an analysis of its financial condition? Excessive payments in any one year can create a cash flow Read more…

Analyzing Debt Terms, Yields, Prices, and Credit Ratings Reproduced below is the debt footnote from the 2013 10-K report of Dell Inc. Long-Term Debt (in millions) February 1, 2013 February Read more…

Analyzing and Reporting Financial Statement Effects of Bond Transactions Lundholm, Inc., reports financial statements each December 31 and issues $400,000, 9%, 15-year bonds dated May 1, 2012, with interest payments Read more…

Analyzing and Computing Accrued Wages Liability and Expense Demski Company pays its employees on the 1st and 15th of each month. It is March 31 and Demski is preparing financial Read more…

Analyzing and Computing Accrued Warranty Liability and Expense Waymire Company sells a motor that carries a 60-day unconditional warranty against product failure. From prior years’ experience, Waymire estimates that 2% Read more…

Analyzing and Computing Accrued Interest on Notes Compute any interest accrued for each of the following notes payable owed by Penman, Inc., as of December 31, 2012 (assume a 365-day Read more…

Computing Depreciation, Net Book Value, and Gain or Loss on Asset Sale Lynch Company owns and operates a delivery van that originally cost $47,900. Lynch has recorded straight-line depreciation on Read more…

Computing Straight-Line and Double-Declining-Balance Depreciation On January 2, Haskins Company purchases a laser cutting machine for use in fabrication of a part for one of its key products. The machine Read more…

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