1. J. Wold, project manager of Print Software, Inc., wants you to prepare a project network;
compute the early, late, and slack activity times; determine the planned project duration; and
identify the critical path. His assistant has collected the following information for the Color
Printer Drivers Software Project: 1. J. Wold, project manager of Print Software, Inc., wants you
to prepare a project network; compute the early, late, and slack activity times; determine the
planned project duration; and identify the critical path. His assistant has collected the following
information for the Color Printer Drivers Software Project:
Solution
Path –
1 ) A-B-E-H-J-K-L = 115 days = Critical Path
2 ) A-C-F-H-J-K-L = 45 days
3 ) A-D-G-I-J-K-L = 105 DAYS
Project Duration 115 DaysIDearliest start schedulelatest start scheduleslack activity
timesA000B880C86557D81810E10100F116857G687810H70700I708010J90900K1001000L11
21120.
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1. Jasper Inc. has a December 31 year-end. The covenants for Jasper .pdf
1. 1. Jasper Inc. has a December 31 year-end. The covenants for Jasper Inc.’s long-term debt A
require, among other things, a current ratio (current assets/current liabilities) of at least 1.2.
Based on the following financial information, what should the calculation of the current ratio be
using US GAAP and IFRS?
a. Current assets are $30 million.
b. Current accrued liabilities are $9 million.
c. Short-term debt at December 31 is $4 million. The treasurer has indicated he intends to get this
debt refinanced before its due date in September, but it is unlikely to happen before the financial
statements are issued.
d. Long-term debt A of $4 million has equal principal payments over the next four years.
e. Long-term debt B is due in three years and has a principal balance of $6 million. The treasurer
discovered a debt covenant violation in November and a waiver was obtained in December.
f. Long-term debt C is due in five years and has a principal balance of $5 million. The treasurer
discovered a debt covenant violation in December and a waiver was obtained on the first day of
business in January.
g. A provision to settle litigation for $10 million also needs to be recorded in the year-end
accounts. It is likely this amount will be paid sometime in the next year. The current pretax
discount rate is 10%.
Solution
Answer: Current ratio=Current Asset/Current Liability
=($30 million)/($9 million+$4 million+$10 million)
=1.304 times
