Suppose the Canadian National Railway Company (CN)…

Question:

Suppose the Canadian National Railway Company (CN) total assets in a recent year were $24.400 million and its total liabilities were $14,640 million. That year, CN reported operating is commitments for its locomotives, freight cars, and equipment totalino 35 million. If these assets had been recorded as capitale ad es would have risen by promately 735 milion s ume that and Calculate CNS debt to stratiot s . 296) using the figures reported, and then after increasing assets and liable for the unrecorded operating P Round answers to decor without operating leases with operating leases Debt to assets.

Answer:

Canadian National Railway Company
Figures in Millions
Debt-to-assets ratio
Using figures as reported
Total Liabilities/Total assets
14640/24400=
60%
Meaning 60% of the assets are financed by outside liabilities &
the rest 40% by owners’ Equity or internal funds
With unrecorded lease liabilities & corresponding assets
(14640+735)/(24400+735)=
61.17%
ie. 61%
Meaning 61% of the assets are financed by outside liabilities &
the rest 39 % by owners’ Equity or internal funds

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