Current Portion of Long-Term Debt


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Current Portion of Long-Term Debt

On a balance sheet, the part of a company's long-term debt that must be paid within a year. The current portion of long-term debt is a liability and is recorded on the balance sheet separately from current liabilities and long-term liabilities. Investors may add the current portion of long-term debt to the current liabilities and compare them to current cash flow to determine if the company is at risk of default. A high amount of current portion of long-term debt compared to poor cash flow is considered a sign of poor financial health.
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Exhibit 1 The Current Portion of Fixed Assets Approach Current asset: Cash $200 Current portion of fixed assets (CPFA) $5,000 Fixed asset: Taxi value (long-term portion) $20,000 Total assets $25,200 Current liabilities $0 Current portion of long-term debt (CPLTD) $4,000 Long-term loan (long-term portion) $16,000 Equity $5,200 Total liabilities + equity $25,200
4 billion of short-term debt, including current portion of long-term debt, and nearly $4 billion of long-term debt.
09 Shares used in computing income per common share: Basic 5,445,475 5,417,300 Diluted 6,126,967 6,167,995 Unaudited Audited BALANCE SHEET HIGHLIGHTS 3/31/06 12/31/05 Cash $ 522,639 $ 877,182 Total current assets 30,677,073 31,458,345 Total Assets 31,858,476 32,687,784 Total current liabilities 4,417,730 5,428,429 Working capital 26,259,343 26,029,916 Current portion of long-term debt 75,398 87,617 Long-term debt, net of current portion 25,899 42,188 Total Shareholders' Equity 27,349,039 27,162,272 Total Liabilities and Shareholders' Equity $31,858,476 $32,687,784
Net indebtedness (long-term debt, capital lease obligation, bank indebtedness and current portion of long-term debt and capital lease obligation, minus cash and cash equivalents) was reduced to $441,381 as at December 31, 2005 compared to $6,856,835 at the end of 2004.
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