Unformatted text preview: Because some of the debt is being reclassified from long-term to current as installment payments come due, the long-term debt will decline. The current portion will decline (all other things equal) in the year-end 2014 (due 2015) and 2015 (due 2016) balance sheets, but sharply increase in the year-end 2016 and 2017 balance sheets. The liquidity of the company will vary inversely to these changes. Also, assuming no new issuance of long-term debt, the balance will be cut nearly in half by the end of 2018, thereby improving the company's solvency (all other things equal). AACSB: Analytic AICPA FN: Measurement...
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- Winter '11
- $1.0 billion, Border Airlines Inc., $212 million, $273 million, $421 million, $777 million