Long-term debt is comprised of the following:
December 31
Current Year preceding Year
Total long term-debt $15,317 $5,110
Less current portion (1,276) (51)
Long-term debt $14,041 $5,059
a. How much of the long-term debt was disclosed as a current liability on the current year’s December 31 balance sheet?
b. How much did the total current liabilities change between the preceding year and the current year as a result of the current portion of long-term debt?
c. If Coca-Cola did not issue additional long-term debt next year, what would be the total long-term debt on December 31 of the upcoming year?
Answer:
a. $1,276 is the amount disclosed as the current portion of long-term debt.
b. The current liabilities increased by $1,225 ($1,276 – $51).
c. $14,041 ($15,317 – $1,276)