Question: Sealy Corporation reported the following line items in its statement of cash flows for the nine months ended August 30, 2009: Amortization of discount on

Sealy Corporation reported the following line items in its statement of cash flows for the nine months ended August 30, 2009:

Amortization of discount on secured notes ............................................. 351,000
Amortization of debt issuance costs and other ........................................2,925,000

In British Airways' financial statements, Note 28: “Long-term borrowings” describes the company's long-term debt. Neither of the two items above is reported in the financial statements of British Airways, and neither is likely to appear there in the future. Why?

Step by Step Solution

★★★★★

3.45 Rating (161 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

The two items above are specifically related to the cash flow activities of Se al... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Intermediate Accounting Questions!

To prepare its statement of cash flows for the year ended December 31, 2010, Sweet Confections, Inc., gathered the following information: Gain on sale of land .............. $ 25,000 Proceeds from...

To prepare its statement of cash flows for the year ended June 30, 2011, Glavine Sports Products, Inc., gathered the following information: Loss on sale of automobile ........... $ 5,000 Proceeds...

To prepare its statement of cash flows for the year ended December 31, 2012, McKinney Carterette Cataloging Specialists, Inc., gathered the following information: Dividends paid ............... $...

Sealy Corporation reported the following line items in its statement of cash flows for the nine months ended August 30, 2009:(Amortization of discount on secured notes- 351,000;Amortization of debt...

Air FranceKLM (AF), a French company, prepares its financial statements according to International Financial Reporting Standards. AF's annual report for the year ended March 31, 2011, which includes...

Air FranceKLM (AF), a French company, prepares its financial statements according to International Financial Reporting Standards. AFs annual report for the year ended March 31, 2011, which includes...

AirFrance IFRS comprehensive case Part D D4. Note 31.3 lists a number of contingent liabilities. Are amounts for those items recognized as a liability on AF's balance sheet? Explain. D5. Sealy...

Refer to the financial statement and the notes to consolidated financial statements: a) What were the Second CUp's total current liabilities at June 24, 200? What was the increase /. decrease in...

Refer to the financial statement and the notes to consolidated financial statements: a) What were the Second Cup's total current liabilities at June 24, 2000? What was the increase /. decrease in...

Refer to the financial statement and the notes to consolidated financial statements: a) What were the Second CUp's total current liabilities at June 24, 200? What was the increase /. decrease in...

Why does the intrinsic value of a call rise with the price of the stock, whereas the intrinsic value of a put declines as the stocks price rises?

What are the S, E, R, 2, and T in your Black-Scholes formula for each of your two chosen options? Show calculations, where necessary, and explain in words how you got each number. Attach print-outs...

9. Aggregate Demand and Aggregate Supply Is it possible for the price level to fall while production and employment both rise? If it is possible, how could this happen? If it is not possible, explain...

Define scales of measurement

What are the computational guidelines for determining whether a convertible security is to be reported as part of diluted earnings per share?

Discuss why options and warrants may be considered potentially dilutive common shares for the computation of diluted earnings per share.

What is the yield to maturity of a 30-year bond that pays a coupon rate of 7.54 percent per year, has a $1,000 par value, and is currently priced at $855? Assume annual coupon payments. Round the...

Problem 5-17 Comparing Investment Criteria The treasurer of Amaro Canned Fruits, Inc., has projected the cash flows of projects A, B, and C as follows: Year 0 Project A Project B - $170,000 -...

H. Cochran, Inc., is considering a new three-year expansion project that requires an initial fixed asset investment of $2,550,000. The fixed asset will be depreciated straight- line to zero over its...