I am not sure how to go about the bonus questions.

ACCT 607 Applied Case Assignment #7 (Chapters 10 and 11) Name Kevin Mongello Answer the following questions (Part I and Part II) based on the provided excerpts from a selection of greater Washington area public companies' recent 10-Ks. (You will not need to supplement with outside sources of company data in order to answer the questions.) Part I: Booz Allen Hamilton Holding Corporation (NYSE: BAH; McLean, VA) Founded in 1914, Booz Allen Hamilton describes itself as \"a leading provider of management consulting, technology, and engineering services to the U.S. government in the defense, intelligence, and civil markets.\" Booz Allen Hamilton Holding serves as the top-level holding company for the consolidated Booz Allen Hamilton U.S. government consulting business. Answer the following questions based on the Company's Consolidated Balance Sheets for March 31, 2015 and 2014 (hereafter, FY15 and FY14), which are excerpted and presented on the next page: 1. During FY15, the decreases in Class B, Class C, and Class E shares are because those shares were converted to Class A shares. Assume that the remaining increase in Class A share is due to new share issuances for cash. What journal entry would the Company have recorded for the issuance of those new shares? Decreease in Class B Stocks =582,080 2. There were no sales of Treasury Stock during FY15. What was the average share price at which the Company repurchased additional Treasury Stock shares during FY15? Average Purchase Price = Total Value/# of outstanding shares = 72,293/2,999,393 = .024/share 3. There were no usual transactions affecting the Company's Retained Earnings during FY15. If Net Income for FY2015 was $232,569 thousand, what was the value of dividends declared during the year? Retained Earnings - March 31, 2014 Plus Net Income Total Less: Cash Dividends Retained Earnings - March 31, 2015 $ 42,688 $232,569 $275,237 $ X (solving for X) $104,457 Cash Dividends = 275,237 - 104,457 Cash Dividends = $170,780 Answer Page 1 of 4 Page 2 of 4 EXCERPT FROM BOOZ ALLEN HAMILTON HOLDING CORPORATION'S 2015 10K ACCT 607 Applied Case Assignment #7 (Chapter 10, 11) Continued Part II: Under Armour, Inc. (NYSE: UA; Baltimore, MD) 4. Incorporated in Maryland in 1996, Under Armour, Inc. describes itself as \"developing, marketing and distributing branded performance apparel, footwear and accessories for men, women and youth.\" On June 15, 2015, Under Armour announced the creation of a new class of non-voting common stock, the Class C common stock. The press release stated that: Under Armour expects to issue Class C stock through a stock dividend to all existing holders of Under Armour's Class A and Class B common stock, which will have the same effect as a two-for-one stock split. Each holder of a share of Class A or Class B stock will receive one share of the new Class C stock. Do you agree or disagree that the effect of the Class C stock dividend will be the same as a two-forone stock split? As an example, assume the transaction would have occurred on January 1, 2015. On the basis of the information on Under Armour's Consolidated Balance Sheet for December 31, 2014 (excerpted and presented on the next page of this assignment), what journal entry would be required to record (a) a two-for-one stock split, and (b) the Class C stock dividend? (a) Two-for-one stock split: No entry is required for two-for-one stock split (b) Class C stock dividend: Retained Earnings Stock Dividend 70 Stock Dividend Common Stock - Class C 70 70 70 Do you agree or disagree that the effect of the Class C stock dividend will be the same as a twofor- one stock split? EXCERPT FROM UNDER ARMOUR INC.'S 201510K Und r Arm our, Inc.and Subsidiaris Consolidat d Bala nc. Sheets (In thousands, exc pt shar data) Decemb er 31,2014 Assf!s Current Cash and cash equivalents assets s Accounts receivable, net Inventories Prepaid expenses and other current assets Deferred income taxes Total current assets Property and equipment, net Goodwill December 31,2ll3 s 593,175 279,835 536,714 87,177 347,489 209,952 469,006 63,987 52,498 38,377 1,549,399 1,128,81 1 223,952 305,564 123,256 Intangible assets, net 122,244 26,230 33,570 57,064 Deferred income taxes Other long term assets $ Total assets 24,on 31,094 47,543 s 2,095 , 083 1,577, 74 1 Liabilitis and Stockholder s' Equity Current liabilities s Revolving cred it facility Accounts payable Accrued expenses Current maturities of long term debt Other current liabilities Total current liabilities Long term debt, net of current maturities Other long term liabilities Total liabilities Commitments and contingencies (see Note 7) Stockholders' equity Class A Conm10n Stock, $0.0003 113 par value;400,000,000 shares authorized as of December 31, 20 14 and 20 13; 177,295,988 shares issued and outstanding as of December 31, 2014 and 171,628,708 shares issued and outstanding as of December 31,20 13. Class B Convertible Common Stock, $0.0003 1/3 par value; 36,600,000 shares authorized, issued and outstanding as of December 31,2014 and 40,000,000 shares authorized, issued and outstanding as capital of December 31, 20 13. Additional paid-in Retained earnings Accumu lated other comprehensive income (loss) Total stockholders' equity s Total liabilities and stockholders' equity s 210,432 147,681 100,000 165,456 133,729 28,95 I 34,563 4,972 22,473 421,627 255,250 426,630 47,95 1 67,906 49,806 744,783 524,387 59 57 12 508,350 856,687 (14,808 ) 1,350,300 13 397,248 653,842 2,194 1,053,354 2,095 , 083 s 1,577, 74 1 See accompanying notes. PaZ 4of4 ACCT 607 BONUS Applied Case Assignment (Chapters 10 and 11) Name This applied case is OPTIONAL. You do NOT need to complete this assignment. However, if you choose to complete this assignment and submit it along with Applied Case Assignment #7 by the appropriate due date, it will be graded as a BONUS case assignment. Your grade on the BONUS case assignment will replace one of your earlier case assignment grades, if it improves your overall score. Lockheed Martin Corporation (NYSE: LMT; Bethesda, MD) describes itself as \"a global security and aerospace company principally engaged in the research, design, development, manufacture, integration and sustainment of advanced technology systems, products and services,\" with its principal customers being agencies of the U.S. Government. On the next two pages are Lockheed Martin's Consolidated Statements of Earnings, Comprehensive Income, and Balance Sheets, along with the Long-Term Debt footnote, excerpted from the its 2014 10-K. (You will not need to supplement with outside sources of company data in order to answer the questions.) 1. What is the principal or face value of Lockheed Martin's long-term debt? 2. (a) To what covenant(s) is Lockheed Martin subject under the terms of their revolving credit facility? (b) How is the covenant ratio described differently from what we might compute as part of the ROE decomposition? Page 1 of 4 ACCT 607 BONUS Applied Case Assignment (Chapters 10 and 11) 3. The footnote states that \"In April 2013, [Lockheed Martin] repaid $150 million of long-term notes with a fixed interest rate of 7.38% due to their scheduled maturities.\" At the time of repayment, did the net carrying value of these long-term notes reflect at a premium, a discount, or par value? Explain. 4. Has Lockheed Martin's solvency improved or deteriorated in 2014 relative to 2013? Explain your response, and identify the primary cause for that change. EXCERPTS FROM LOCKHEED MARTIN CORPORATION'S 2014 10K Lockheed Martin Corporation Consolidated Ba lance Sheets (in millions,except pa r value) December 31, 2014 2013 Assets Current assets Cash and cash equivalents Receivables,net Inventories, n et Deferred income taxes Other current assets Total current assets Property,plant and equipment, net Goodwill Deferred income taxes Other noncurren t assets Total assets $ 1,446 5,884 2,882 1,451 666 12,329 $ 2,6 1 7 5,834 2,977 1,088 813 13,329 4,755 10,862 4,013 5,114 $ 37,073 4,706 10,348 2,850 4,955 $36,188 Liabilities and stockholders' equity Curren t l iab ilit ies Accounts payable Customer advances and amoun ts in excess of costs incurred Salaries,benefits and payroll taxes Other current l iabilities Total current liabilities Accrued pension liabilities Other postretirement benefit liab i lit ies Long-tenn debt, n et Other noncurren t liabi lities Total liabil ities Stockholders' equity Common stock,$1 par value per share Add iti onal paid-in capital Retained earn ings Accumu lated other comprehensive loss Total stockholders'equity Total liabilities and stockholders'equity $ 1,570 5,790 1,826 1,926 11,112 $ 1,397 6,349 1,809 1,565 11,120 11,413 1,102 6,169 3,877 33,673 9,36 1 902 6,152 3,735 31,270 314 319 14,956 14,200 (9,60I) 4,9 1 8 $36,188 (I1,870) 3,400 $ 37,073 The accompanying notes are an integra l pa rt of these consolidated financial statements. Note 8 -Debt Ourlong-tenn debt consisted of the fol lowing (in millions): Notes with rates from 2. 13% to 6.1 5%,due 20 1 6 to 2042 Notes with rates from 7.00% to 7.75%,due 20 1 6 to 2036 Other debt Total J ong-tenn debt Less: unamortized d iscounts Total long-tenn debt, net 2014 $5,642 916 483 7,041 (872) $6,169 2013 $5,642 916 476 7,034 (882) $6,1 52 ln August 20 14, we entered into a new $ 1 .5 billion revolving credit facility with a syndicate of banks and concurren tly tenninated our existing $1.5 billion revolv ing credit faci lity wh ich was scheduled to expire in August 20 16. The new credit facility expires August 2019 and we may request an d the banks may grant,at their discretion ,an increase to the new credit facility of up to an additional $500 m illion . The credit facility also includes a subl imit of up to $300 million ava ilable for the issuance of letters of credit. There were no borrowings outstand ing under the n ew facility th rough December 3 1, 20 14. Borrowings under the new credit facility would be unsecured and bear interest at rates based ,at our option,on a Eu rodollar Rate or a Base Rate, as defined Ill the new credit facility. Each bank's obl igation to make loans under the credit facility is subject to, among other things, our compliance with various representations ,warranties and covenants, including covenants lim iting our ability and certain of our subsidiaries' ability to encumber assets and a covenant not to exceed a maximum l everage ratio, as defined in the credit facility. The leverage ratio covenant excludes the adjustments recognized in stockholders' e.quity related to postretireme.nt bene.fit plans. As of De.cember 31,2014,we were in compliance with a ll covenants containe.d in the cre.dit fac.ility, as well as in our debt agreements. We have agreements in p lace with financial institutions to prov ide for the issuance of commercia l paper. There were no commercial paper borrowings outstanding during 2014 or 20 13. If we were to issue commercial paper,the borrowings wou l d be supported by the credit facility. ln April 20 1 3,we repa id $150 million oflong-tenn notes with a fixed interest rate of7.38% due to their schedu l ed maturit ies. During the next five years, we have >chedul ed long-tenn debt maturities of$952 m i llion due in 2016 and $900 million due in 2019. Interest payments were $326 mill ion in 2014,$340 mill ion in 20 13 and $378 mi l lion in 2012.All of ou r existing unsecured and unsubordinated indebtedness rank equally in right of payment