In its 2018 annual report to shareholders, Border Airlines Inc. presented the following balance sheet information about its liabilities: In addition, Border presented the following among its note disclosures:
Maturities of long-term debt (including sinking fund requirements) for the next five years are: 2019 - $421 million; 2020 - $212 million; 2021 - $273 million; 2022 - $1.0 billion; 2023 - $777 million.
Required:
Consider the appropriate classification of these long-term debt obligations. Assuming no more long-term debt will be issued, what are the implications of the information above for Border's liquidity and solvency risk in 2018 and the following years?

Question

In its 2018 annual report to shareholders, Border Airlines Inc. presented the following balance sheet information about its liabilities:  In addition, Border presented the following among its note disclosures:
Maturities of long-term debt (including sinking fund requirements) for the next five years are: 2019 - $421 million; 2020 - $212 million; 2021 - $273 million; 2022 - $1.0 billion; 2023 - $777 million.
Required:
Consider the appropriate classification of these long-term debt obligations. Assuming no more long-term debt will be issued, what are the implications of the information above for Border's liquidity and solvency risk in 2018 and the following years?

Quizplus · Accepted Answer

The Answer of In its 2018 annual report to shareholders, Border Airlines Inc. presented the following balance sheet information about its liabilities:  In addition, Border presented the following among its note disclosures:
Maturities of long-term debt (including sinking fund requirements) for the next five years are: 2019 - $421 million; 2020 - $212 million; 2021 - $273 million; 2022 - $1.0 billion; 2023 - $777 million.
Required:
Consider the appropriate classification of these long-term debt obligations. Assuming no more long-term debt will be issued, what are the implications of the information above for Border's liquidity and solvency risk in 2018 and the following years?

In Its 2018 Annual Report to Shareholders, Border Airlines Inc