Santa CorporationNOTE: These multiple choice questions requi…
Santa CorporationNOTE: These multiple choice questions require present value information.Santa Corporation manufactures Christmas decorations and supplies throughout the world. The company owns property, plants, and equipment and also enters into leases for certain facilities. Assume that Santa’s incremental borrowing rate is 8%. The company’s tax rate is 40%. Listed below are selected financial data for Santa and a portion of the company’s lease footnote. Year 2 Year 1 Year 0 Property, Plant, & Equipment (net) $882,468 $717,453 $658,214 Total Assets 1,756,854 1,405,484 1,254,896 Common Shareholders’ Equity 867,992 652,626 587,951 Sales $2,922,915 $2,415,632 Cost of Goods Sold 2,016,811 1,642,630 Depreciation Expense 78,584 67,542 Interest Expense 106,663 90,343 Net Income 248,448 217,407 2 Santa Corp. Lease Disclosure (amounts in thousands) Lease Commitments at the end of Year 2 Year Reported Lease Commitments Year 3 $148,239 Year 4 $252,800 Year 5 $278,327 Year 6 $279,210 Year 7 $285,452 Beyond Year 7 $2,471,600 Assuming that Santa Corporation was required to capitalize its lease, how would the company’s fixed asset ratio change under this assumption?
Read DetailsThe nurse is caring for a client who sustained a moderate he…
The nurse is caring for a client who sustained a moderate head injury following a bicycle accident. The nurse’s most recent assessment reveals that the client’s respiratory effort has increased from 20 to 32 breaths per minute. What is the nurse’s most appropriate response?
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