Refer to the financial statements of Campbell Soup Company in Appendix A.

Required:
a. Campbell Soup Company has zero coupon notes payable outstanding.
(1) Indicate the total amount due noteholders on the maturity date of these notes.
(2) The liability for these notes is lower than the maturity value. Describe the pattern in the reported amounts for this liability in future years.
(3) Ignoring dollar amounts, prepare the annual journal entry that Campbell Soup Company makes to record the liability for accrued interest.
b. Campbell Soup reports long-term debt on the balance sheet totaling $772.6 million. Conceptually, what does the amount $772.6 represent? Over what years will cash outflows occur as related to this debt?
c. The note on leases reports future minimum lease payments under capital leases as $28.0 million and the present value of such payments as $21.5 million. Identify which amount is actually paid in future years.
d. Identify where in the financial statements that Campbell Soup reports the payment obligation for operating leases of $71.9 million.
e. Predict what interest expense will be in Year 12 assuming no substantial change in the debt structure.