Q: Could not get to $517,021 (new Long-Term Debt) after using the chart below (Slide 48). Can you go over this after the lesson?
A: New Long-Term Debt in 2018 is the difference between 2017 Long-Term Debt after the payment of 2017 CMLTD measured against 2018 Long-Term Debt. 2018 Long-Term Debt is the sum of 2018 CMLTD and Long-Term Debt reported in the long-term liabilities section of the balance sheet.
2018 CMLTD of $127,727 is reported in the final piece of information in Federal Supporting Details attached to the business income tax returns. 2017 and 2018 Long-Term Debt (excluding current maturities) is reported at Line 20 on Schedule L as $3,328 and $392,622, respectively.
2018 Long-Term Debt calculation is $127,727 + $392,622 = $520,349 less $3,328 equals New Long-Term Debt in 2018 of $517,021.
Course overview: Business Income Tax Returns and Cash Flow Analysis