The Bear Minimum

E) BV charges franchisees various fees and discloses them in a somewhat confusing manner. The

They may have to do that since the company's predicament indicates partly that "the bank doesn't understand Be Our Guest's business"�. Exhibit 2 shows a list of what the company cannot do in terms of the loans it has with State Street. All of these covenants, like prohibiting two consecutive quarters of net losses and not incur a net loss for any fiscal year, suggest further that Be Our Guest may need to find another lender who will not be as strict with its terms.�

Another way to treat this provision would be not to recognize at the inception of the lease but directly expense the costs when the required maintenance is performed. Regarding the accrual method in Alternative 1, ASC 360-15-25-5 prescribes “the use of accrue-in-advance (accrual) method of accounting for planned maintenance activities is prohibited in annual and interim financial reporting periods.” This is consistent to FASB’s opinion

The cost of $1.3 million related to early lease termination should not be included as liability on the Pharma Co. December 31, 2010 Balance Sheet. According to ASC420-10-25-12, a liability for costs related to termination of the operating lease before the end of its term shall be recognized when contract is terminated. The termination date of the contract could be the date of written notice sent to the counterparty or the date when entity negotiated a termination with the counterparty. In this case, the date of termination is not stated

All the circumstances listed above are addressed in the contract and makes Systems Inc. not

How realistic is it that the leasehold payment will remain at the same level for the next 10 years?

Commercial Capital Corporation is the leasing subsidiary of a major regional bank and offers a lease at 12.75 million per year for 4 years. The first payment is due upon delivery and installation. The rest of the payments are due each subsequent year at the beginning of the year. This cost includes the same service contract as what would have been obtained with purchase.

Bear’s fans starts to get excited every year around this time, but this year is different. Chicago has put together an offense with several threats at every skilled position. The receivers have an excellent opportunity to put together a duo, if not a trio that could easily lead the NFC. The back field is shaping up like it will be a force of its own to be dealt with by opposing defenses. And at quarterback, well, let’s just say Cutler will have no excuses this year.

Glancy uses Pushing the Bear to contextualize concrete history. She frames the reality of the Trail of Tears using fictional accounts from multiple narrators, while also integrating historical lists and documents into her story. Pushing the Bear is unique because it tells a history through so many perspectives. Each is relatively short, and the reader is often thrown without transition from one narrator to the next. This technique creates a unique historiography because of its ability to address historical context of a large group as opposed to an individual. By giving all participants of the Trail of Tears a voice, Glancy tells a more “true” history than one ever could using a single narrator account of history. Glancy includes many bills

The major argument used to support the insolvent trading provisions is that they are necessary to protect the interests of creditors. As stated, insolvent trading provisions have generally ensured a conservative approach by directors when the company is experiencing financial difficulties. The potential alternative effects of such a decision are:

A2: Jack should recognize the $1.2 million as rental expense along with all the other lease payments ratably over the 10 years (lease term of the new agreement). It should initially be accounted for as prepaid lease payments and then be recognized as lease expense over the next 10 years as par. 840-10-35-4 states, “If at any time the lessee and lessor agree to change the provisions of the lease, other than by renewing the lease or extending its term, in a manner that would have resulted in a different classification of the lease under the lease classification criteria in paragraphs 840-10-25-1 and 840-10-25-42 had the changed terms been in effect at lease classification inception, the revised agreement shall be considered as a new agreement over its term, and the criteria in paragraphs 840-1025-1 and 840-10-25-42 shall be applied for purposes of classifying the new lease. Likewise, except when a guarantee or penalty is rendered inoperative as described in paragraphs 840-30-35-8 and 840-30-35-23, any action that extends the lease beyond the expiration of the existing lease term, such as the exercise of a lease renewal option other than those already included in the lease term, shall be considered as a new agreement, which shall be classified according to the guidance in section 840-10-25. Changes in estimates (for example, changes in estimates of the economic life or of

The reason why Butler Lumber Co. is considering finding a different line of credit is because they’ve nearly exhausted all their usable credit with Suburban National Bank, using up $247,000 of the $250,000 of the credit limit. To compile this issue, the bank is wishing to secure the loan with some of Butler’s property. Considering the company’s large debt ratios, they have decided to check with Northrop National Bank’s offer to extend their line of credit by $215,000.

1. Bank loans outstanding at any time could not exceed 85% of Friendly’s accounts receivable; and 2. Friendly’s total

The bank lends amount $Y to ABC for the purchase of Lexington. The bank loan is repaid in 20 equal, year-end, payments. However, the bank insists that the lease payments must be 110% of the annual repayments of the bank loan. Note that the equal bank loan repayments include interest and principal.

I have included the firm's original income statement and balance sheet without the purchase and then with the machine purchase. I have assumed that the firm would use the $218,000 to reduce the bank loans balance for each year. This reduction of the bank loan balance will lower their three restrictive financial ratios.