Cyclone, Inc. reports the following liabilities (in thousands) on its January 31, balance sheet. 2007, balance sheet and notes to the financial statements.

(SO 7)

Accounts payable $3,263.9 Notes payable—long-term $5,746.7 Accrued pension liability 1,215.2 Operating leases 1,641.7 Accrued liabilities 13235821 Loans payable—long-term 335.6 Bonds payable 1,961.2 Payroll-related liabilities 558.1 Current portion of Short-term borrowings 2,563.6 long-term debt 1,992°2 Unused operating line of credit 3,337.6 Income taxes payable 235.2 Warranty liability—current 1,417.3 Instructions

(a) Identify which of the above liabilities are likely current and which are likely longterm.

Say if an item fits in neither category. Explain the reasoning for your selection.

(b) Prepare the liabilities section of Cyclone’s balance sheet as at January 31, 2007.

Calculate liquidity