To explain: The changes in the long-term obligations that have taken place due to the relative changes in stockholders’ equity and total assets, and whether is it good or bad for the company.
Introduction:
Intel Corporation:
Intel is a technology-based multinational American company founded on July 18, 1968 by Robert Noyce and Gordon Moore. It supplies and markets various types of processors for computer manufacturers such as Lenovo, Apple, HP, etc. It also manufactures motherboard chipsets, graphic chips and flash memory devices.
Long-Term Debt:
It refers to the amount of outstanding debt with a maturity period of 12 months or longer, which is classified as a non-current liability in the
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Foundations of Financial Management
- Which of the following is a measurement of earnings that represents the profit before interest, taxes, depreciation and amortization are subtracted? A. net income B. retained earnings C. EBITDA D. EPSarrow_forwardMost companies pay current liabilities Select one: a. out of current assets. b. by issuing interest-bearing notes payable. C. by issuing stock. d. by creating long-term liabilities.arrow_forwardWhich ratio measures the ability to pay current liabilities with current assets?a. Debt ratiob. Current ratioc. Liability ratiod. Asset ratioarrow_forward
- Which of the following ratios is used by the company to determine its ability to pay currently maturing obligations? a. Cash Ration b. Interest Coverage Ratio c. Equity Ratio d. Accounts Receivable turnoverarrow_forwardwhich of the followings increase the Debt/equity ratio a. increase in current liabilities b. increase in long term liability c. increase in equity d. decrease in long term liabilityarrow_forwardWhich of the following groups of accounts increase with a credit? Oa. assets, common stock, revenues Ob. common stock, revenues, expenses Oc. liabilities, common stock, revenuesarrow_forward
- The balance sheet account that is usually reported at its fair market value is: a. Short-term marketable securities b. Accounts receivable c. Current liabilities d. Inventoryarrow_forward"The following table summarizes the rules of debit and credit. For each of the items A through L, indicate whether the proper answer is a debit or a credit.IncreaseDecrease Normal BalanceBalance sheet accounts:AssetABDebitLiabilityCDebitDStockholders’ equity:Common StockCreditEFRetained EarningsGHCreditDividendsDebitCreditIIncome statement accounts:RevenueJKCreditExpenseLCreditDebit"arrow_forwardInterest payable is shown on the? A)income statement B)balance sheet as a long term liability C)balance sheet as a current liability D)balance sheet as a current assetarrow_forward
- In a classified balance sheet, liabilities are separated into two categories based on a. The amount of the obligation to be satisfied—large versus small. b. To whom the obligation is owed—those inside versus those outside of the company. c. The nature of the obligation—determinable amount versus estimated amount. d. The length of time until the obligation is expected to be satisfied—less than one year versus more than one year.arrow_forwarddefine if operating, investing or financing expense Increase in Bonds Payable A decrease in the current asset account. A decrease in the current liabilityarrow_forwardLiabilities which are estimated and payable are; Select one: O a. Not reported on the balance sheet O b. Disclosed in the notes to the balance sheet O c. Estimated and reported on the balance sheet O d. Estimated and reported on the income statementarrow_forward
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