Use the following excerpt from the financial statements of Fixet Company's debt footnote (from Fixet Company's 2018

Question:

Use the following excerpt from the financial statements of Fixet Company's debt footnote (from Fixet Company's 2018 annual report) to answer these questions:

a. At December 31, 2018, what is the amount of the current portion o f long-term debt?

b. How much debt will mature over the next 5 years?

c. What would be the difference in liabilities if Fixet reported the debt at fair values?

Fixet Company

Note 9 Long-Term Debt [Excerpt]

Long-term debt net of unamortized premiums and discounts and swap fair value adjustments is comprised of the following:

In millions of U. S. dollars                                                                                December 31, 2018
5.66% Corporate bond, payable July 23, 2020 .....................................                $ 27.0
5.4 % Corporate bond. payable August 7, 2020 ..................................                    16.1
4.7% Corporate bond. payable October 1, 2021 .................................                    50.0
5.15% Corporate bond. payable December 15, 2023 ........................                  110.4
4.3% Japanese yen note. payable June 26, 2025 .................................                  117.7
152125% Japanese yen note. payable February 14, 2020 .................                    55.1
Total .........................................................................................................                  376.3
Less current maturities .........................................................................                      7.4
Non-Current Portion .............................................................................                $368.9


The scheduled maturity of long-term debt in each of the years ending December 31, 2019, through 2023, is $7.4 million, $172.1 million, $57.4 million, $47.4 million, and $7.3 million at face value, respectively. The Company's long-term debt is recorded at adjusted cost net of amortized premiums and discounts. The fair value of long-term debt is estimated based upon quoted prices for similar instruments. The fair value of the Company's long-term debt, including the current portion, was approximately $403 million at December 31, 2018.

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
Maturity
Maturity is the date on which the life of a transaction or financial instrument ends, after which it must either be renewed, or it will cease to exist. The term is commonly used for deposits, foreign exchange spot, and forward transactions, interest...
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Intermediate Accounting

ISBN: 978-0134730370

2nd edition

Authors: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella

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