Refer to the financial statements of Polaris in Appendix A to answer the following.
1. Compute times interest earned for the fiscal years ended 2011, 2010, and 2009. Comment on Polaris’ ability to cover its interest expense for this period. Assume an industry average of 20 for times interest earned.
2. Polaris’ current liabilities include “Sales promotions and incentives”; assume that this account reflects “Loyalty reward liabilities.” Is this a known or an estimated liability? Explain how this liability is created.
3. Does Polaris have any commitments or contingencies? If yes, then briefly explain them.

  • CreatedNovember 26, 2013
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