Revenue Recognition, Accounts Receivable, Uncollectible Accounts – New York Times

...

LONG-TERM DEBT 1,448,146 1,373,630

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Total liabilities 2,325,516 2,047,144

STOCKHOLDERS' EQUITY

Common stock of $.10 par value 16,738 17,882

Retained earnings 1,467,103 1,600,743

Common stock held in treasury, at cost (198,858) (173,137)

Accumulated other

comprehensive income (loss), net of income tax: (3,820) 3,170

Total stockholders' equity 1,281,163 1,448,658

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Total $ 3,606,679 $ 3,495,802

From Footnote #1: SUBSCRIPTION REVENUES AND COSTS

Proceeds from subscriptions and related costs, principally agency commissions, are deferred at the time of sale and are included in the Consolidated Statements of Income on a pro rata basis over the terms of the subscription.

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PART II: New York Times – Long-Term Assets

[pic 3]

Use the attached balance for the year 2000 to answer the following questions about long-term assets.

For the following questions, assume that total depreciation expense for the NYTimes during 2000 was $155,000.

- How much did the NY Times originally pay for all the buildings and equipment that it owned at December 31st, 2000?

End

2216046

(-) Beg

2128014

88032

(+) Depreciation

155000

243032

- Assuming that no land was sold during the year 2000, how much did the NY Times pay to purchase additional land during the year?

End

72228

(-) Beg

67149

5079

- Assume that the NYTimes had purchased $185,300 in additional equipment during the year. Also assume that the only thing that the NYTimes sold was one piece of printing equipment for $191,171 in cash.

- How much did the NYTimes originally pay for the piece of equipment that was sold?

Beg

2128014

End

2216046

Difference

97268

(+) Purchase

185300

(-)Beg A

2313314

(+) Sale

191171

Beg A

2313314

Difference

-97268

Equip Value

288439

(-) Sale

X

End

2216046

- At the time of sale, what was the accumulated depreciation on the piece of equipment that was sold?

Sales

191171

Gross

216211

(-)Net

X

93903

[pic 4]

(-) NBV

-93903

Gain/Loss

97268

Acc Dep

122308

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CONSOLIDATED BALANCE SHEETS December 31, December 26,

(In thousands) 2000 1999[pic 5]

ASSETS

CURRENT ASSETS

Cash and cash equivalents $ 69,043 $ 63,861

Accounts receivable (net of

allowances: 2000 - $44,169; 1999 - $39,749) 341,863 366,754

Inventories 35,064 28,650

Deferred income taxes 62,939 53,611

Other current assets 101,857 102,032

Total current assets 610,766 614,908

INVESTMENT IN JOINT VENTURES 107,320 121,940

PROPERTY, PLANT AND EQUIPMENT

Land 72,228 67,149

Buildings & Equipment 2,216,046 2,128,014

Total - at cost 2,288,274 2,195,163

Less accumulated depreciation 1,081,114 976,767

Property, plant and equipment - net 1,207,160 1,218,396

INTANGIBLE ASSETS 1,681,433 1,540,558

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