QUESTION 2 Partially correct Mark 1.05 out of 5.00 Flag question Reformulating Financial Statements for Pension Contributions Xerox Corporation reports the following pension and retiree health care ("Other") footnote as part of its 10-K report. Pension Retiree Benefits Health December 31, 2015 ($ millions) Change in Benefit Obligation Benefit obligation, January 1 Service cost Interest cost Plan participants' contributions Actuarial loss Currency exchange rate changes Plan amendments and curtailments Benefits paid/settlements Benefit obligation, December 31 Change in Plan Assets Fair value of plan assets, January 1 Actual return on plan assets Emplover contribution Plan participants' contributions Currency exchange rate changes Benefits paid/settlements Other 12,410 947 36 295 34 14 (332) (538) 25) (17) (31) (638) 77) $11,220 865 $ 9,736 (89) 319 63 14 (440) (638) 77) $8,888 Fair value of plan assets, December 31 (2,332)(865) Net funded status at December 31 Pension Retiree December 31, 2015 ($ millions) Components of Net Periodic Benefit Cost Service cost Interest cost Expected return on plan assets Recognized net actuarial loss Amortization of prior service credit Recognized settlement loss Recognized curtailment loss Defined benefit plan:s Defined contribution plans Total net periodic cost Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income Net actuarial loss Prior sevice credit Amortization of net actuarial loss Amortization of net prior service credit Curtailment gain Total recognized in other comprehensive income Benefits Health $36 295 (376) 96 34 2 18) 89 . (22) 142 100 $242 $2 125 $ (4) (16) (32) (185) (1) 18 $(78) $3 Use the above information, along with the two prior years' information below, to answer the requirements $ millions Cash contributions to pension plan $253 $307 2013 2014 Use the above information, along with the two prior years' information below, to answer the requirements. $ millions 2013 2014 Cash contributions to pension plan $253 $307 a. Use the three-year average of the employer contribution to pension benefits (in dollar terms) to reformulate the statement of cash flows for each of the three years 2013, 2014, and 2015. See Analyst Adjustments 10.2 for guidance in the reformulation proces:s Compute the 3 year average employer contribution to pension benefits Round to the nearest whole number $ 274 ($ millions) Use rounded figure for subsequent computations Use negative signs with answers to indicate adjustments that reduce account balances Statement of Cash Flow Adjustments Cash contribution 2013 2014 2015 Cash from operations b. Reformulate the balance sheet for each of the three years 2013, 2014, and 2015 Assume a tax rate of 35% .Round answers to the nearest whole number Use negative signs with answers to indicate adjustments that reduce account balances e rounded tigure tor subsequent computation Use negative signs with answers to indicate adjustments that reduce account balances Statement of Cash Flow Adjustments 2013 2014 2015 Cash contribution Cash from operations b. Reformulate the balance sheet for each of the three years 2013, 2014, and 2015 Assume a tax rate of 35% .Round answers to the nearest whole number Use negative signs with answers to indicate adjustments that reduce account balances Balance Sheet Adjustments 2013 2014 2015 Cash balance Deferred tax assets Total assets Retained earnings Check You have correctly selected 4 QUESTION 2 Partially correct Mark 1.05 out of 5.00 Flag question Reformulating Financial Statements for Pension Contributions Xerox Corporation reports the following pension and retiree health care ("Other") footnote as part of its 10-K report. Pension Retiree Benefits Health December 31, 2015 ($ millions) Change in Benefit Obligation Benefit obligation, January 1 Service cost Interest cost Plan participants' contributions Actuarial loss Currency exchange rate changes Plan amendments and curtailments Benefits paid/settlements Benefit obligation, December 31 Change in Plan Assets Fair value of plan assets, January 1 Actual return on plan assets Emplover contribution Plan participants' contributions Currency exchange rate changes Benefits paid/settlements Other 12,410 947 36 295 34 14 (332) (538) 25) (17) (31) (638) 77) $11,220 865 $ 9,736 (89) 319 63 14 (440) (638) 77) $8,888 Fair value of plan assets, December 31 (2,332)(865) Net funded status at December 31 Pension Retiree December 31, 2015 ($ millions) Components of Net Periodic Benefit Cost Service cost Interest cost Expected return on plan assets Recognized net actuarial loss Amortization of prior service credit Recognized settlement loss Recognized curtailment loss Defined benefit plan:s Defined contribution plans Total net periodic cost Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income Net actuarial loss Prior sevice credit Amortization of net actuarial loss Amortization of net prior service credit Curtailment gain Total recognized in other comprehensive income Benefits Health $36 295 (376) 96 34 2 18) 89 . (22) 142 100 $242 $2 125 $ (4) (16) (32) (185) (1) 18 $(78) $3 Use the above information, along with the two prior years' information below, to answer the requirements $ millions Cash contributions to pension plan $253 $307 2013 2014 Use the above information, along with the two prior years' information below, to answer the requirements. $ millions 2013 2014 Cash contributions to pension plan $253 $307 a. Use the three-year average of the employer contribution to pension benefits (in dollar terms) to reformulate the statement of cash flows for each of the three years 2013, 2014, and 2015. See Analyst Adjustments 10.2 for guidance in the reformulation proces:s Compute the 3 year average employer contribution to pension benefits Round to the nearest whole number $ 274 ($ millions) Use rounded figure for subsequent computations Use negative signs with answers to indicate adjustments that reduce account balances Statement of Cash Flow Adjustments Cash contribution 2013 2014 2015 Cash from operations b. Reformulate the balance sheet for each of the three years 2013, 2014, and 2015 Assume a tax rate of 35% .Round answers to the nearest whole number Use negative signs with answers to indicate adjustments that reduce account balances e rounded tigure tor subsequent computation Use negative signs with answers to indicate adjustments that reduce account balances Statement of Cash Flow Adjustments 2013 2014 2015 Cash contribution Cash from operations b. Reformulate the balance sheet for each of the three years 2013, 2014, and 2015 Assume a tax rate of 35% .Round answers to the nearest whole number Use negative signs with answers to indicate adjustments that reduce account balances Balance Sheet Adjustments 2013 2014 2015 Cash balance Deferred tax assets Total assets Retained earnings Check You have correctly selected 4
