t0104（t0104）.docVIP

t0104（t0104） No. 0 One: Lenovo Airlines debt decision Suppose youre a recent student who has just graduated from an accounting school, and when you start your job, you are assigned to a special accounting section of a chartered bank. Your first assignment was for a feeder line for Canadian Airlines, too An international airlines liabilities are analyzed. You are informed that your employer is currently negotiating with the airline for a loan arrangement and is preparing the guarantee terms for the loan contract. But the personnel concerned property right Ratio (liabilities / owners equity) has a dispute about the meaning of liabilities. Lenovo Aviation Co., Ltd. has a strong profitability, operating cash flow is more abundant, the marginal contribution rate of 70% (see financial statements and notes related content). Your task is to outline a definition of debt that is appropriate for your bank, and use this definition to analyze the various items of the balance sheet. Table: Lenovo Airlines Limited financial statements December 31, 1994 unit: million US dollars - - - - - - - - - -- Liabilities current liabilities Accounts payable and accrued expenses payable $64 23 - advance ticket revenue received in advance Long term liabilities and financial leasing flows 34 Total $121 Long term liabilities and financial leases (Note 6) $135 Other long-term debt 89 No. 1 Deferred payment (Note 7) 42 Total $266 Minority interests 10 Less permanent bonds (note 8) 84 Shareholder equity Preferred stock (note 9) 25 Common stock 31 Retained earnings 43 Total $99 Total $580 - - - - - - - - - -- Note: Lenovo Airlines December 31, 1994 financial statements 6. Long term liabilities and financial leases. Unit: millions of dollars -- -- -- -- -- -- -- -- -- Long term liabilities at maturity rate (%) 1994 December 31st -- -- -- -- -- -- -- -- -- US $(a) 1995 more than 2009 $67 Canadian dollar: Canadian government 19977.217 Other 1995, one, 2004, 32 Swiss Franc debt (b) 2000 1 2006 5.125~5.62