The company made payments of $176 on its debt obligations, and took an additional $610 in debt...

Question:

The company made payments of $176 on its debt obligations, and took an additional $610 in debt during the year. What would long term debt be, if it was 5,483 in 2017 and 5,900 in 2018?

What Is Long-Term Debt:

A company's Long-Term Debt, formally referred to as Non-Current Liabilities, are presented as a separate subsection of Liabilities and Equity on the Balance sheet. Long-Term Debt is defined as obligations athat are not due before 12 months after the reporting date.

Answer and Explanation:

Long-term debt balance = 2018 balance - debt repayments + additional debt

= 5,900 - 176 + 610

=$6,334

The answer is thus $6,334.


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Long-Term Debt: Definition, Cost & Formula

from Financial Accounting: Help and Review

Chapter 8 / Lesson 7
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