You Are Reading the 2006 Annual Report of Curpen Corporation

question 22

Essay

You are reading the 2006 annual report of Curpen Corporation and you find the following items in its footnotes.

a. The useful life of machinery has been increased from 10 to 15 years.
b. The expected rate of return on plan assets has been increased to 10% from 8%.
c. The company has started to capitalize small tools purchased beginning in 2006.

For each of the above, determine the effect (higher, lower, or unchanged) of the change on the ratios listed below for the year 2006:

a. Debt-to-equity
b. Return on assets
c. Cash Flow from operations

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A document issued by a sheriff as part of legal proceedings, often confirming the status of something, such as the outcome of a sale or possession of property.

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The process of securing a loan by using property as collateral, typically used by individuals or businesses to purchase real estate.

Writs of Execution

Legal orders issued by a court authorizing the seizure of assets from a debtor to satisfy a judgment.

Survey

A comprehensive examination or an assessment of something, often used for collecting data or understanding conditions or opinions.