ACC 545 Week 4 Individual Assignment Restructuring Debt - APA Format + References
The management team of Smith Jones Construction has decided to restructure the debt of the company since the company is in financial trouble. The company needs to use their available assets to decrease their debt. There are several options available to the company to help to achieve this goal. First the company must look at the type of long-term debt that they have and the requirements that surround it. The long-term debt of a company consists of the probable future sacrifices of economic benefits that arise from present obligations that are not payable within a year (Kieso, Weygandt, & Wardield, 2007). The company’s long term debt is made up of bonds payable, notes payable, and capital leases. Their long-term debt totals $3,758,470 of $7,915,590 that is the total of their liabilities. That is 47% of the debt of the company.