Exhibit 11.15 presents excerpts from the notes to the financial statements of Home Supply Company.
a. The amounts shown for Debentures, Notes, and the Medium-Term Notes appear as the same amounts on February 1, 2012 and 2013. What is the likely interpretation for the identical reported amounts at the beginning and end of the year?

b. The Senior Notes comprise two debt issues on February 1, 2012, and an additional two debt issues on February 1, 2013. Indicate the amounts in each of the following cells.

c. The amount on the balance sheet for Senior Notes on February 1, 2013, of $1,980 million slightly exceeds the total issue price of the four Senior Notes of $1,979 million (= $988 × $991). Why do the amounts differ and why is the difference so small?
d. Why are the interest rates on the convertible notes so much lower than those on Home Supply Company otherdebt?

  • CreatedMarch 04, 2014
  • Files Included
Post your question