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Notes: 1. Spring Corporation deals with two separate financial institutions, one of which has the bank averdran. 2. Capital assets are accounted for using the revaluation model. Appraisals are obtained evory two years 3. Shares are actively traded on the open market and are accounted for using the FV NII model. The firi value of the shares at December 31,2023 was $65,000. 4. Of the $460,000 bank loan payable at December 31,2023,$30,000 of toan principat will be repaid within the next 12 months. 5. Spring Corporation is authorized to issue an unlimited number of common shares and 20,000 non cumulative $2,00 preferred shares. At year-end 140,000 common shares and 5,000 preferred shares are issued and outstanding Required: 1. Based on the information provided, prepare what should have been shown in the current assets and current liabilities section of the Statement of Financial Position. 2. How does classification of the bank overdraft impact working capital and the working capital ratio? Briefly discuss the cthical issues surrounding the presentation of a bank overdraft assuming the Barikt Lian Payable carries with it a debt covenant to maintain a working capital ratio of at least 2.0 . What are the possible reasons management may have used to classify the overdraft? how should the deficiency be fixed? Mors: requind Notes: 1. Spring Corporation deals with two separate financial institutions, one of which has the bank averdran. 2. Capital assets are accounted for using the revaluation model. Appraisals are obtained evory two years 3. Shares are actively traded on the open market and are accounted for using the FV NII model. The firi value of the shares at December 31,2023 was $65,000. 4. Of the $460,000 bank loan payable at December 31,2023,$30,000 of toan principat will be repaid within the next 12 months. 5. Spring Corporation is authorized to issue an unlimited number of common shares and 20,000 non cumulative $2,00 preferred shares. At year-end 140,000 common shares and 5,000 preferred shares are issued and outstanding Required: 1. Based on the information provided, prepare what should have been shown in the current assets and current liabilities section of the Statement of Financial Position. 2. How does classification of the bank overdraft impact working capital and the working capital ratio? Briefly discuss the cthical issues surrounding the presentation of a bank overdraft assuming the Barikt Lian Payable carries with it a debt covenant to maintain a working capital ratio of at least 2.0 . What are the possible reasons management may have used to classify the overdraft? how should the deficiency be fixed? Mors: requind