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Long-Term Debt
Long-term debt is a debt obligation that has a maturity from the date the obligation was incurred of more than one year. The debt obligation commits the organization to repay the amount borrowed and to make daily interest payments through the life of the loan. Failure by the borrower to make the needed payments can result in bankruptcy.
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Partial Income Statement Year Ending 2011 Sales Revenue $350,000 COGS $140,000 Fixed Costs $ 43,000 SG&A E
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