财务报表分析与运用 杰拉尔德 课后答案英文版第七章Word格式.docx

财务报表分析与运用 杰拉尔德 课后答案英文版第七章Word格式.docx

《财务报表分析与运用 杰拉尔德 课后答案英文版第七章Word格式.docx》由会员分享，可在线阅读，更多相关《财务报表分析与运用 杰拉尔德 课后答案英文版第七章Word格式.docx（34页珍藏版）》请在冰豆网上搜索。

$472

1.18

Pretaxincome

1,789

4,740

5,502

1,834

3,648

2.04

Netincome

930

2,607

3,256

1,339

2,070

2.23

Capitalizedinterest

141

108

82

39

59

Amortizationofcapitalizedinterest

47

24

28

35

9

a.Calculations

EBIT

$2,190

$5,104

$5,814

$2,239

$4,120

Timesinterestearned

5.46

14.02

18.63

5.53

8.73

1.60

b.Adjusted

Netcapitalizedinterest

$94

$84

$54

$4

$50

After35%incometax

61

55

3

33

542

472

394

444

531

0.98

2,237

5,128

5,842

2,274

4,129

（i）Timesinterestearned

4.13

10.86

14.83

5.12

7.78

1.88

（ii）%reductionfromreportedratio

-24.4%

-22.5%

-20.4%

-7.4%

-10.9%

$1,695

$4,656

$5,448

$1,830

$3,598

2.12

（iii）Netincome

869

2,552

3,221

1,336

2,038

2.34

%reductionfromreported

-6.6%

-2.1%

-1.1%

-0.2%

-1.6%

b.（iv）Expensingallinterestreducesnetincomeforeachyear.Howevertheeffectdiminishesovertime.

c.（i）Becausetheamountofinterestcapitalizeddeclinedovertime,restatementreducestherateofincreaseininterestexpense.

（ii）Whiletheinterestcoverageratioislowerafterrestatement,itstrendimprovesduetothelowergrowthrateofinterestexpense.

（iii）Bothpretaxandnetincomearelowerafterrestatementbuttheirgrowthrateimprovesduetothelowergrowthrateofinterestexpense.

d.Therestateddataaremoreusefulforfinancialanalysisbecausetheyarebasedonactualinterestexpense.Theyprovidebettercomparabilitywithfirmsthatdonotcapitalizeinterest.

2.{S}a.（i）Interestcostcanbecapitalizedonborrowingsdirectlyassociatedwiththeprojectorwhenthecompanyhasdebtequaltoorexceedingthecostofconstruction.

（ii）Start-upcostsmustbeexpensedunderU.S.GAAP.

（iii）Shippingcostsareconsideredpartofthecostofacquisition.

（iv）IncreasesinthemarketvalueoflandandbuildingsmaynotberecognizedunderU.S.GAAP.

b.（i）WhilethebenchmarktreatmentunderIAS23istoexpenseallinterest,capitalizationofborrowingcostsdirectlyattributabletoaprojectisanallowedalternative.

（ii）SameasU.S.GAAPexceptthatthebenchmarkThecapitalizationofinterestisanallowedalternativeunderIAS23（paragraph11）

（iii）SameasU.S.GAAP.

（iv）WhilerevaluationisanallowedalternativeunderIAS16,itmustbeappliedtoallassetsinaparticularclassandcouldbeselectivelyappliedtoaparticularproject.

3.{S}a.UnderSFAS86（textpage242）,computersoftwaredevelopmentcostscanbecapitalizedonlywheneconomicfeasibilityhasbeenestablished.

b.UnderIAS38（paragraph45）,intangibleassetssuchascomputersoftwarecanberecognizedwhentheenterprisecandemonstratetechnicalandeconomicfeasibility.

4.{M}Exhibit7S-2containsthecalculationsrequiredbypartsathroughc.

Exhibit7S-2

Ericsson

AmountsinSEKmillions

Developmentcostsforsoftwaretobesold:

Openingbalance

7,398

10,744

Capitalization

5,232

7,170

7,898

Amortization

（3,934）

（3,824）

（4,460）

Writedown

（989）

Year-endbalance

13,193

Developmentcostsforsoftwareforinternaluse:

1,463

（152）

1,311

a.UnderSwedishGAAP:

Netsales

167,740

184,438

215,403

Pretaxincome

17,218

18,210

16,386

Totalassets

147,440

167,456

202,628

Stockholders'

equity

52,624

63,112

69,176

Averagetotalassets

157,448

185,042

Averageequity

57,868

66,144

Averagestockholders’equity

57,868

66,144

Assetturnover

1.17

1.16

PretaxROE

0.31

0.25

b.Adjustments:

（3,824）

Writedown

Neteffect

1,298

3,346

2,449

-

Totalpretaxeffect

3,760

Adjustedpretaxincome

18,516

21,556

20,146

（i）%change

8%

18%

23%

Exhibit7S-2（continued）

Year-endbalances:

Softwaretobesold

13,193

Internalusesoftware

Total

14,504

Less:

deferredtax@35%

（2,589）

（3,760）

（5,076）

Increaseinequity

4,809

6,984

9,428

Adjustedtotalassets

154,838

178,200

217,132

（ii）%change

5.0%

6.4%

7.2%

Adjustedequity

57,433

70,096

78,604

（iii）%change

9.1%

11.1%

13.6%

c:

Adjustedaverageassets

166,519

197,666

Adjustedaverageequity

63,764

74,350

（i）Adjustedassetturnover

1.11

1.09

（ii）AdjustedpretaxROE

0.34

0.27

d.TheadjustmentsforEricssonshowthatcapitalizationofsoftwaredevelopmentcostscanhaveasignificanteffectonreportedincomeandequity,andonfinancialratios.Thereforecomparabilityrequiresthatallfirmsberestatedtothesamebasis.

e.Theamountscapitalizedhighlightexpendituresandenabletheanalysttoinquireaboutthenewproductsunderdevelopment.Theamortizationperiodusedmaybeusefulasaforecastoftheusefullifeoftheproduct.Inbothcases（capitalizationandamortization）significantchangesfrompriorperiodsmayprovideusefulsignalsofimpendingchange.

5.{S}a.Thecapitalizationoftheinvestmentindisplaysdelaystheirimpactonincomeascomparedwithexpensing.Inaddition,cashfromoperationsispermanentlyincreasedastheexpendituresareclassifiedascashflowsforinvestment.Finally,iftheseexpendituresarevolatile,capitalizationandamortizationsmoothestheimpactonreportedincome.

b.（i）In2000,thecapitalizedamountincreasedby$1,648,000.Hadpromotionaldisplaysbeenexpensed,netincomewouldbe$1,071,200（after35%tax）lower.Expensingwouldhavereducednetincomeby7.4%（$1,071.2/$14,467）.

（ii）Shareholders’equitywouldbereducedby65%of$10,099,000equalto$6,564,350or7.1%.

（iii）Reportedreturnon（average）assetsequals$14,467/[（$166,656+$140,609）/2]=9.42%

Adjustedreturnon（average）assetsequals（$14,467–$1,071）/[（$166,656-$10,099）+（$140,609-$8,451）/2]=9.28%asassetsmustbereducedbytheinvestmentinpromotionaldisplays.

6.{M}a.Brandnamesareclearlyanasset.However,itisnotclearthattheseassetsshouldbeshownoncorporatebalancesheets.

Oneadvantageofrecognizingbrandnamesiscompleteness;

abalancesheetthatignoresmajorfirmassetsisoflimiteduseforanalysis.Anotheradvantageisthatthecostofacquiringordevelopingabrandnameshouldberecordedasaninvestment（asset）inordertoproperlymatchrevenuesandexpenses.

Themajordisadvantageofbrandnamerecognitionisthedifficultyofpropermeasurement.Aseachbrandnameisunique,markettransactionsarenotavailabletovaluethebrand.Thus,thevaluerecognizedissubjective;

differencesacrossfirmsmayreflecteitherrealdifferencesinthevalueofthebrandsordifferentmeasurementdecisions.

Oneapproachinvolvescapitalizationoftheacquisitioncost（forpurchasedbrands）ortheadvertisingandotherdevelopmentcosts（forinternallydevelopedbrands）.Inthelattercase,itisunlikelythatthevalueofthebrandwillbeequaltothecostofdevelopment.Asuccessfulbrandwillbeworthmuchmorethanthecostofitsdevelopment;

anunsuccessfulbrandmayhavenovalueatall.（Thesecharacteristicsmayalsodescribeacquiredbrands.）

Further,thevalueofbrandschangesovertime.DespitethequotationfromLaing,brandscanalsobecome"

dilapidated"

iftheyareneglected,iftheadvertisingispoor,oriftheproductsaredefective.Thevalueofbrandswillalsobeaffectedbychangesinmarketconditions,e.g.,pricingdecisionsandtheinroadsmadebygenericproducts.

Fromthepointofviewoffinancialanalysis,therefore,itisnotclearthatreportingmanagement'

sestimateofbrandvaluewouldbehelpful.The"

proofofthepuddingisintheeating"

andavaluablebrandshouldbehighlyprofitable.Theevaluationofthatprofitabilitymightbebetterlefttothemarketplace.

b.Theadvantageofamortizationisthattheincomestatementshouldreflectallexpensesthathelpproduceincome.Ifprofitabilityisduetothebrandname,theamortizationofitsacquisitioncostshouldbeanelementofexpense.

Ontheotherhand,giventhesubjectivityofbrandnamevaluation,theamortizationamount（alsoaffectedbythechoiceofmethodandlife）maybeapoormeasureoftheexpiredvalue.Inaddition,brandnamesmaynotdeclineinvalueovertime;

anydeclineislikelytobeirregular.

Forpurposesofanalysis,therefore,theamortizationofbrandnameintangibleassetsshouldbeexcludedfromincome.Theevaluationofprofitability,however,shouldconsidertheroleofbrandnames.

Exhibit7S-3

NorskHydro

1998R