Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. 1. calculate the ratio of total liabilities to tot

1. Calculate the ratio of Total Liabilities to Total Assets (TL/TA). Is there anything unusual...

50.1K

Verified Solution

Question

Accounting

1. Calculate the ratio of Total Liabilities to Total Assets (TL/TA). Is there anything unusual about this ratio? Explain.

2. How many American Airlines aircraft are operated under operating leases and how many operated under capital leases? Why does American Airlines appear to prefer operating lease contracts to capital lease contracts?

3. What interest rate does American use in capitalizing capital lease payments?

4. What is the present value of the operating lease payments? Use the rate used by American Airlines in capitalizing capital lease payments.

5. Calculate the ratio of Total Liabilities to Total Assets after capitalizing operating leases.

6. Describe the effect of the capitalization of operating leases on the TL/TA ratio? Is there anything unusual about this effect? Explain.imageimageimage

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students