The liabilities section of the company’s most recent consolidated balance sheets
ID: 2470906 • Letter: T
Question
The liabilities section of the company’s most recent consolidated balance sheets is provided below:
(in millions)
1,400
Refer to King Cotton Company. What is the percent increase/decrease of long-term liabilities from 2012 to 2013? Round to two decimal places.
____________%
Which liability appears to have caused the greatest change?
A) Accounts payable
B) Long-term debt
C) Deferred income taxes
King Cotton Company Consolidated Balance Sheets(in millions)
December 31, 2013 2012 Current liabilities Short-term borrowings $250 $200 Accounts payable and other current liabilities 4,500 4,450 Income taxes payable 200 50 Total current liabilities $4,950 $4,700 Long-term debt 2,700 3,000 Other long-term liabilities 3,800 3,950 Deferred income taxes 1,5001,400
Explanation / Answer
King Cotton Company
Consolidated Balance Sheets
(in millions)
December 31,
2013
2012
Change
% Change
Current liabilities
Short-term borrowings
$250
$200
$50
25
Accounts payable and other current liabilities
4,500
4,450
$50
1.123596
Income taxes payable
200
50
$150
300
Total current liabilities
$4,950
$4,700
$250
5.319149
Long-term debt
2,700
3,000
($300)
-10
Other long-term liabilities
3,800
3,950
($150)
-3.79747
Deferred income taxes
1,500
1,400
$100
7.142857
Income tax payable –Current liability has caused the biggest change.
King Cotton Company
Consolidated Balance Sheets
(in millions)
December 31,
2013
2012
Change
% Change
Current liabilities
Short-term borrowings
$250
$200
$50
25
Accounts payable and other current liabilities
4,500
4,450
$50
1.123596
Income taxes payable
200
50
$150
300
Total current liabilities
$4,950
$4,700
$250
5.319149
Long-term debt
2,700
3,000
($300)
-10
Other long-term liabilities
3,800
3,950
($150)
-3.79747
Deferred income taxes
1,500
1,400
$100
7.142857
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