EX 11-7 Current portion of long-term debt

Burger King Holdings, Inc., the operator and franchisor of Burger King restaurants, reported the following information about its long-term debt in the notes to a recent financial statement:


Long-term debt is comprised of the following: June 30 2009 2008 Notes payable $823,100,000 $876,200,000 Less current portion (67,500,000) (7,400,000) Long-term debt $755,600,000 $868,800,000


a. How much of the notes payable was disclosed as a current liability on the June 30, 2009, balance sheet?

b. How much did the total current liabilities change between 2008 and 2009 as a result of the current portion of long-term debt?

c. If Burger King did not issue additional notes payable during 2010, what would be the total notes payable on June 30, 2010?

Answer:
a. $67,500,000, the amount disclosed as the current portion of long-term debt.
b. The current liabilities increased by $60,100,000 ($67,500,000 – $7,400,000).
c. $755,600,000 ($823,100,000 – $67,500,000)

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