Please show calculations, answer ALL questions with a substantial response. All pages are shown clearly and completely.

Chapter Three I Analyzing Financing Activities PROBLEMS Refer to the financial statements of Campbell Soup Campbell Soup PROBLEM 3-1 Company in Appendix A. Required a. Campbell Soup Company has zero coupon notes payable outstanding Interpreting Notes Payable and Lease Disclosures (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 (3) Ignoring dollar amounts, prepare the annual journal entry that Campbell Soup Company makes to record b. Campbell Soup reports long-term debt on the balance sheet totaling $772.6 million. Conceptually, what does the c. The note on leases reports future minimum lease payments under capital leases as $28.0 million and the d. Identify where in the financial statements that Campbell Soup reports the payment obligation for operating e. Predict what interest expense will be in Year 12 assuming no substantial change in the debt structure (Hint: for this liability in future years. the liability for accrued interest. amount $772.6 represent? Over what years will cash outflows occur as related to this debt? present value of such payments as $21.5 million. Identify which amount is actually paid in future years. leases of $71.9 million. Identify the substantial interest-bearing obligations of the company and multiply that balance times an appro- CHECK (e) Rate is 11.53% priate estimate of the effective rate for that debt)