Fwd: 403 A03 Problem Set

[Yan, Lin]

Hi guys, 

Please see TA's email below. I don't think he deducted any points from our assignment. Any questions, please let me know.

CY

Sent from iPhone 4G.

Begin forwarded message:

From: "Johnson, Richard D." <richard.jo...@anderson.ucla.edu>
Date: 16 October, 2010 9:17:46 PM PDT
To: "Yan, Lin" <lin.ya...@anderson.ucla.edu>
Subject: Re: 403 A03 Problem Set

Sorry, I should have said I'm not deducting any points because the errors were simple misunderstandings and very minor. You did get full credit for 1 and 2.

Rick

On Sat, Oct 16, 2010 at 9:15 PM, Yan, Lin <lin.ya...@anderson.ucla.edu> wrote:

Hi Rick,

 

Thanks for your email.

 

First of all, in regard to the DTA sign, we know that the DTA under asset should has the opposite effect on the CFO. However, how we understood the question is that (Deferred tax asset - Deferred tax liabilities) decreased $214,927. So CFO = N/I - Deferred tax asset + deferred tax liabilities = N/I - (deferred tax asset - deferred tax liabilities). That why we put negative sign for the decrease. Does this explanation make sense?

 

Secondly, will points be deducted for requirement 3 as we really thought this question just asks us to calculate CFO only. Please kindly advise.

 

Lastly, for case 1 and 2, did we get full mark or?

 

Thanks a lot, Rick. Appreciate it very much!!!

 

Regards,

 

Claire Yan

UCLA Anderson MBA 2012

lin.ya...@anderson.ucla.edu

---

From: Rick Johnson [richard.jo...@anderson.ucla.edu]
Sent: Saturday, October 16, 2010 9:04 PM
To: Yan, Lin
Subject: 403 A03 Problem Set

Lin,

On Req. 1.10 you guys had the sign of the DTA cash flow wrong. It should have been positive. Also, on Req. 3 you should have calculated the total cash flow, just using indirect for operations, but I can see how this is misleading. Please forward to your group.

Thanks,

Rick