AP9-8 [S LO9-4 Making Decisions about Contingent Liabilities ( P9-8) For each of the following situations, determine whether the company should (a) report a liability on the balance sheet, (b) disclose a contingent liability in the footnotes, or (c) not report the situation. Justify your conclusions. A company that manufactures mountain climbing equipment introduces a new type of climbing rope. Past experience demonstrates that lawsuits will be filed as soon as the new rope is involved in any serious climbing accidents. The company believes it is highly probable that at least one jury will award damages to climbers injured in an accident, but it is unable to estimate the amount of any payout. An analyst puts out a report that