The Liabilities Section of the Company's Most Recent Consolidated Balance

question 101

Essay

The liabilities section of the company's most recent consolidated balance sheets is provided below:
$\begin{array}{c}\text { King Cotton Company }\\ \text {Consolidated Balance Sheets}\\ \text { (in millions)}\\\begin{array}{llr}\hline && \text { December 31, } \\&\text { Year 2 } & \text { Year 1 } \\ \text { Current liabilities } &\\ \text { Short-term borrowings } &\$250&\$200\\ \text {Accounts payable and other current liabilities } &4,500&4,450\\ \text {Income taxes payable } &\underline{200}&\underline{50}\\ \text {Total current liabilities } &\$4,950&\$4,700\\\\ \text { Long-term debt } &2,700&3,000\\ \text {Other long-term liabilities } &3,800&3,950\\ \text { Deferred income taxes} &1,500&1,400\\\end{array}\end{array}$

-Refer to King Cotton Company.Describe briefly how each of the following long-term liabilities arises (i.e.,what kind of transaction produces the resulting long-term liability?).You may want to include the appropriate journal entry (ignore amounts)in your description.
$\text { Long-Term Debt }$

---

Definitions:

HRM Practices

Human Resource Management practices refer to the strategies, methods, and processes used to manage personnel in an organization effectively.

Line Authority

Authority to make decisions about production, performance, and people.

Organizational Policies

Guidelines and rules developed by an organization to govern its actions and decision-making processes, ensuring consistency and compliance.

Grievance Handling

The process used by unions and employers to address complaints from employees regarding work conditions, contract violations, or other workplace issues.