# the following information appeared in a footnote to the 2011 annual report of delta 4375484

The following information appeared in a footnote to the 2011 annual report of Delta Air Lines, Incorporated:The following table summarizes, as of December 31, 2011, our minimum rental commitments under capital leases . with initial or remaining terms of more than 1 year:Years Ending December 31 (in millions) 2012 ……………………. \$ 221 2013 ……………………. 196 2014 ……………………. 168 2015 ……………………. 155 2016 ……………………. 163 Thereafter ………………….. 323 Total minimum lease payments ………….\$1,226 Less: Lease payments that represent interest …….. (489) Present value of future minimum capital lease payments ….\$ 7371. Suppose the minimum capital lease payments are made in equal amounts on March 31, June 30, September 30, and December 31 of each year. Compute the interest and principal to be paid on capital leases during the first half of fiscal 2012. Perform calculations in millions with two decimal places. Assume an interest rate of 8% per annum, compounded quarterly. 2. Prepare the journal entries for the lease payments in requirement 1 on March 31 and June 30, 2012. Omit explanations. 3. Delta has well over \$1,000 million per year in operating leases. Suppose an analyst thought it appropriate to treat some of Delta’s operating leases as if they were capital leases. Assume that the payments on these operating leases were \$1,000 million per year for 15 years made annually at year-end. If these operating leases were treated as capital leases and capitalized at 8% compounded annually, how much would long-term debt increase? Do calculations to the closest million. Delta’s long-term debt and capital leases total \$11,847 million. What percentage increase in long-term debt would result from capitalizing these operating leases?View Solution:
The following information appeared in a footnote to the 2011

## using budget data how many apple iphone 4 s would have to have been completed 239121

Using budget data, how many Apple iPhone 4’s would have to have been completed for Danshui Plant No. 2 to break even? 2. Using budget data, what was the total expected cost per unit if all manufacturing and shipping overhead (both variable and fixed) were allocated to...

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Armstrong Helmet Company manufactures a unique model of bicycle helmet Question Case project Learning Objectives: Prepare practical applications of course concepts Develop analytical and critical thinking Develop decision-making capabilities Enhance professional...