Answered step by step
Verified Expert Solution
Question
1 Approved Answer
(Questions 4-5) The following information is from Fedex's 2023 financial statements: NOTE 7: LEASES The following table is a summary of the components of
(Questions 4-5) The following information is from Fedex's 2023 financial statements: NOTE 7: LEASES The following table is a summary of the components of net lease cost for the period ended May 31 (in millions): Operating lease cost Finance lease cost: Amortization of right-of-use assets Interest on lease liabilities Total finance lease cost Short-term lease cost Variable lease cost Net lease cost Operating leases: Operating lease right-of-use assets, net Current portion of operating lease liabilities Operating lease liabilities Total operating lease liabilities Finance leases: Net property and equipment Current portion of long-term debt 2023 2022 3,300 $ 3,100 36 26 18 16 54 42 531 556 1,435 1,368 5,320 5,066 2023 2022 17,347 16,613 2,390 2,443 15,363 14,487 17,753 S 16,930 821 455 75 32 725 436 800 468 Long-term debt, less current portion Total finance lease liabilities 4. (3 points) What is the total of Fedex's financing lease costs in fiscal year 2023? 5. (3 points) Explain why Fedex's financing leases have interest expense associated with them, and why its operating leases do not record interest expense?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started