Use the annual report of Carnival Corporation for the 2007 scal year to answer the following questions.


Use the annual report of Carnival Corporation for the 2007 fiscal year to answer the following questions. This information can be found on either the annual report or the SEC 10-K filing at by following the links to Investor Relations.
(a) Calculate the following ratios and measurements for Carnival for the years 2006 and 2007. Comment on changes from year to year and what each ratio means for Carnival.
(1) Current ratio
(2) Working capital
(3) Debt to total assets
(4) Long-term debt to equity
(5) Times interest earned
(b) Does Carnival have any contingent liabilities? If so, how does the company handle the accounting of such liabilities? Where did you find this information?
(c) What kind of retirement plan does Carnival have for its employees?
(d) What portion of Carnival’s long-term debt is due in the next fiscal year?
(e) Does Carnival lease any assets? If so, how does the company account for such leases?
(f) Is Carnival currently financing its operations through the use of bonds? If so, to what extent? If not, what other methods might the company use to finance operations?
Contingent liabilities
A contingent liability is an obligation of business related to an uncertain future event. The business must record it in its financial statements if the amount can be reliably estimated and it is probable that amount will be paid by business as a...
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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