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46. help Branch Company, a building materials supplier, has $17,200,000 of notes payable due April 12, 2025. At December 31, 2024, Branch signed an agreement
46. help
Branch Company, a building materials supplier, has $17,200,000 of notes payable due April 12, 2025. At December 31, 2024, Branch signed an agreement with First Bank to borrow up to $17,200,000 to refinance the notes on a long-term basis. The agreement specified that borrowings would not exceed 80% of the value of the collateral that Branch provided. At the date of issue of the December 31,2024 , financial statements, the value of Branch's collateral was $19,600,000. On its December 31,2024 , balance sheet, Branch should classify the notes as follows: Multiple Choice $3,440,000 short-term and $13,760,000 current liabilities. $15,680,000 long-term and $1,520,000 current liabilities. $17,200,000 of current liabilities. $17,200,000 of long-term liabilitiesStep by Step Solution
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