p10 6b the following selected information was taken from the financial statements of 535191
P10-6B The following selected information was taken from the financial statements of Krispy Kreme Doughnuts, Inc.
Don't use plagiarized sources. Get Your Custom Essay on
p10 6b the following selected information was taken from the financial statements of 535191
For $10/Page 0nly
|
KRISPY KREME DOUGHNUTS, INC. Balance Sheet (partial) (in thousands) |
||
|
Jan. 31, 2010 |
Feb. 1, 2009 |
|
|
Total current assets |
$ 59,223 |
$ 75,806 |
|
Capital assets and other long-term assets |
106,053 |
119,120 |
|
$165,276 |
$194,926 |
|
|
Current liabilities |
$ 37,673 |
$ 39,616 |
|
Long-term liabilities |
64,836 |
97,555 |
|
Total liabilities |
102,509 |
137,171 |
|
Shareholders” equity |
62,767 |
57,755 |
|
Total liabilities and shareholders” equity |
$165,276 |
$194,926 |
|
Other information: |
||
|
2010 |
2009 |
|
|
Interest expense |
$ 10,685 |
$ 10,679 |
|
Tax expense (benefit) |
575 |
(503) |
|
Net loss |
(157) |
(4,061) |
|
Cash provided by operations |
19,827 |
16,593 |
|
Capital expenditures |
7,967 |
4,694 |
|
Cash dividends |
-0- |
-0- |
Note 10. Leases
The Company leases equipment and facilities under both capital and operating leases. The approximate future minimum lease payments under non-cancelable (operating) leases as of January 31, 2010, are set forth in the following table:
|
Amount |
|
|
Fiscal Year Ending in |
in thousands) |
|
2011 |
$ 8,866 |
|
2012 |
7,972 |
|
2013 |
6,769 |
|
2014 |
5,830 |
|
2015 |
5,420 |
|
Thereafter |
56,667 |
|
$91,524 |
Rent expense, net of rental income, totaled $9.6 million in fiscal 2010, $11.8 million in fiscal 2009 and $14.8 million in fiscal 2008.
Instructions
(a) Calculate each of the following ratios for 2010 and 2009.
(1) Current ratio.
(2) Free cash flow.
(3) Debt to total assets ratio.
(b) Comment on Krispy Kreme”s liquidity and solvency.
(c) Read the company”s note on leases (Note 10). If the operating leases had instead been accounted for like a purchase, assets and liabilities would have increased by approximately $68,000,000. Recalculate the debt to total assets ratio for 2010 and discuss the implications for analysis.
Calculator
Our features
We've got everything to become your favourite writing service
Money back guarantee
Your money is safe. Even if we fail to satisfy your expectations, you can always request a refund and get your money back.
Confidentiality
We don’t share your private information with anyone. What happens on our website stays on our website.
Our service is legit
We provide you with a sample paper on the topic you need, and this kind of academic assistance is perfectly legitimate.
Get a plagiarism-free paper
We check every paper with our plagiarism-detection software, so you get a unique paper written for your particular purposes.
We can help with urgent tasks
Need a paper tomorrow? We can write it even while you’re sleeping. Place an order now and get your paper in 8 hours.
Pay a fair price
Our prices depend on urgency. If you want a cheap essay, place your order in advance. Our prices start from $11 per page.