During 2020, Twitter, Inc. (NYSE:TWTR) will be issuing (approximately) $600 million of unsecured notes that will be
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Question:
During 2020, Twitter, Inc. (NYSE:TWTR) will be issuing (approximately) $600 million of unsecured notes that will be due in 2027. Assume that on the day immediately before the note issuance, Twitter has current assets of $4,500 million and current liabilities of $2,370 million.
Required:
- Will the notes be classified as assets or liabilities on Twitter's balance sheet? Will these notes be Notes Receivable or Notes Payable?
- When Twitter issues these notes in 2020, will the notes be classified as current or long-term??
- On the day that these notes are issued, will Twitter's current ratio be impacted? If so, will it increase or decrease?
- Assuming no change in net income before taxes, what would the impact be on return on investment/assets? Would it increase or decrease?
Related Book For
Financial Reporting and Analysis
ISBN: 978-0078025679
6th edition
Authors: Flawrence Revsine, Daniel Collins, Bruce, Mittelstaedt, Leon
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