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Sewickley Company Use the Liabilities Section of Sewickley Company's Balance

Question 181

Essay

Sewickley Company Use the liabilities section of Sewickley Company's balance sheet to answer the questions that follow.
Sewickley Company
Consolidated Balance Sheets
(in millions)

 December 31,20172016 Current liabilities  Short-term borrowings $354$202 Accounts payable and other current liabilities 4,4614,529 Income taxes payable 18364 Total current liabilities $4,998$4,795 Long-term debt $2,651$3,009 Other long-term liabilities 3,8763,960 Deferred income taxes (assume all are long-term) 1,4961,367\begin{array}{l}&\text { December } 31,\\&2017&2016\\\text { Current liabilities }\\\text { Short-term borrowings } & \$ 354 & \$ 202 \\\text { Accounts payable and other current liabilities } & 4,461 & 4,529 \\\text { Income taxes payable } & 183 & 64 \\\text { Total current liabilities } & \$ 4,998 & \$ 4,795\\\\\text { Long-term debt } & \$ 2,651 & \$ 3,009 \\\text { Other long-term liabilities } & 3,876 & 3,960 \\\text { Deferred income taxes (assume all are long-term) } & 1,496 & 1,367\\\end{array}

-Review the consolidated balance sheets of Sewickley Company.
Required:
(1) What are the total long-term liabilities for the two years presented?

(2) What is the percent increase/decrease of long-term liabilities from 2016 to 2017? Which liability appears to have caused the greatest change?

Correct Answer:

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(1) 2017 - $8,023 (in millions)
$2,651 (...

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