Current Portion of Long-Term Debt PepsiCo, Inc., reported the following informat

Question

Current Portion of Long-Term Debt PepsiCo, Inc., reported the following information about its long-term debt in the notes to a recent financial statement (in millions): Long-term debt is comprised of the following: December 31 Current Preceding YearYear $33,284 $28,897 (4,071) (5,076) $29,213 $23,821 Total long term-debt Less current portion Long-term debt 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 PepsiCo did not issue additional long-term debt next year, what would be the total long-term debt on December 31 of the upcoming year?

Explanation / Answer

a. Long Term Liability Disclosed as Current Liability in Current Year = $4,071

b. Changes in Current liabilities Due to Long Term debt = $5,076 - $4,071 = $1,005

The current Liabilities are reduced by $1,005 from preceding year Current Liabilities.

c. If Pepsico did not issue Additional Long Term Debt Next Year

Total Long term Debt on Dec 31 of Coming Year = $29,213

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