I am looking for help with a case for my Finance class. I have completed the case, but I would really like someone to look over my work and see if it is correct before turning it in because I really need a good grade in the class. I am inlcuding images of the case as well as the source for a formula I used. My answers are at the end. Thanks!

My Answers:

A)

2010	2009
40,707	28,518

B)

2010	2009	2008
45,607,000	28,518,000	30,202,000

C)

2010	2009
4,900,000	0

D) Capitalized interest is recognized as an expense on the income statement or in the notes. It also must be added to the denominator of the times intrest earned ratio.

E) Income will have less variability from capitalizing intrest expenses. It will also lead to higher profitability in the early years.

F) Times Interest Earned:

Year	2010	2009
Income b.f. tx (A)	140,473	135,445
Intrest Expense	40,707	28,518
Cap. Int.	4,900	0
Subtotal (B)	45,607	28,518
A/B	140,473	135,445
	45,607	28,518
	3.08	4.75

I would appreciate your help!