财务报表分析与运用 杰拉尔 课后答案英文版第十章财务报表分析与运用 杰拉尔德 课后答案英文版第十章财务报表分析与运用 杰拉尔德 课后答案英文版第十章财务报表分析与运用 杰拉尔德 课后答案英文版第十章.doc

Chapter 10 - Solutions Overview: Problem Length Problem #s {S} 1 - 2, 6 - 22, and 25 {M} 3 - 5, and 23 - 24 1.{S}a. When full-coupon debt is issued, interest paid reduces cash from operations (CFO). When zero-coupon debt is issued, however, no cash interest is paid. CFO is unaffected, and is therefore higher than when full-coupon debt is issued. In addition, when imputed interest on zero-coupon debt is tax deductible, CFO is further increased by the tax benefit. b. When full-coupon debt is issued, the proceeds are included in cash from financing (CFF). When that debt matures, the amount paid reduces CFF. Assuming the debt is issued and redeemed at par, the net effect on CFF is zero over the life of the debt. Zero-coupon debt is issued at a discount; CFF is below the full-coupon case. However at maturity the full face amount is paid (same as full-coupon case). The net amount of CFF (outflow) is therefore greater than when full-coupon debt is issued. c. No effect. d. Interest on the zero-coupon bond rises each year as the carrying amount rises, increasing the base on which each year’s interest expense is computed. All other things being equal, net income declines each year. 2.{S}(i) Net income declines as interest expense increases, reflecting the higher level of interest rates. (ii) The market value of the firm’s debt should remain unchanged. As the interest rate adjusts to changes in market rates, investors will pay the face amount for the debt, assuming no change in credit risk. 3.{M}a. Reported data AMR Corp ? US Airways ? 1998 1999 ? 1998 1999 Cash and short-term investments $ 2,073 $ 1,791 $ 1,210 $ 870 Net receivables 1,543 1,134 355 387 Inventories 596 708 228 226 Other current assets 663 791 571 613 Current assets $ 4,875 $ 4,424 ? $ 2,364 $ 2,096 ? ? ? ? ? Accounts payable 1,152 1,115 430 474 Accrued liabilities 2,122 1,956