Long-Term Liabilities (Assignment 9) Assignment Example | Topics and Well Written Essays - 500 words

Long-Term Liabilities ( 9) - Assignment Example Long-term income taxes payable recorded a negative change of 49.44% from the previous. This clearly indicates that the company reduced its long-term income tax payable by 49.44 percent. This is a good sign of the efforts of the company tom reduce long-term liabilities. According to the notes on the financial statements, the management of the company recorded that the company recorded a significant reduction in income tax payable as a result of changes in tax policies. The U.S. federal and state tax audits resolved to lower the rate of income tax rate from 32.5 percent in April 2, 2011 to 12.7 percent in March 31, 2012. 3. What are the approximate interest rates incurred on your firms long-term liabilities? Complete the schedule below. Some items, e.g., deferred tax liabilities, do not incur interest. Some (or most) of this information will be found in the notes to the financial statements. 5. Go to the statement of cash flows. Observe the amount of "net cash flow from operations" generated in each of the last three years. To what extent does it appear that the company will be able to pay off the above scheduled obligations each year with cash generated from operations? Might the company need to raise the required cash in some other way? Discuss. The company has been recording consistent increase in the amount of net cash flow from operations. In the last financial year ended in December 2011, the Pentair recorded a net cash flow from operations of 320,226,000. This is remarkable given the fact that the company has been recording consistent performance in the last three years. Taking a look at both the present and past performances of the company, the company is only able to pay long term debts. The other obligations have the effect of straining the company’s financial resources and this may require the company to source for additional capital. The company may pay the obligations by raising additional capital from the stock market through