Check my wd Problem 13-3 (Algo) Current-noncurrent classification of debt [LO13-1, 13-4) The balance sheet at December 31, 2021, for Nevada Harvester Corporation includes the liabilities listed below. a 11% bonds with a face amount of $38 million were issued for $38 million on October 31, 2012. The bonds mature on October 31, 2032. Bondholders have the option of calling (demanding payment on the bonds on October 31, 2022, at a redemption price of $38 million Market conditions are such that the call is not expected to be exercised b. Management intended to refinance $10.5 million of its 9% notes that mature in May 2022. In early March, prior to the actual issuance of the 2021 financial statements, Nevada Harvester negotiated a line of credit with a commercial bank for up to $4.5 million any time during 2022. Any borrowings will mature two years from the date of borrowing c. Noncallable 12% bonds with a face amount of $15.5 million were issued for $15.5 million on September 30, 2002. The bonds mature on September 30, 2022. Sufficient cash is expected to be available to retire the bonds at maturity d. A $26 million 7% bank loan is payable on October 31, 2027. The bank has the right to demand payment after any fiscal year-end in which Nevada Harvester's ratio of current assets to current liabilities fails below a contractual minimum of 17 to 1 and remains so for six months. That ratio was 1.45 on December 31, 2021, due primarily to an intentional temporary decline in inventory levels. Normal inventory levels will be reestablished during the first quarter of 2022 Required: 1. For each liability listed above, what amount will be reported as a current lidility and as a noncurrent liability on the December 31, 2021 balance sheet? 2. Prepare the liability section of a classified balance sheet for Nevada Harvester at December 31, 2021 Accounts payable and accruals are $19 million Complete this question by entering your answers in the tabs below. Required 1 Required 2 For each liability listed above, what amount will be reported as a current liability and as an 31, 2021 balance sheet? (Enter your answers in millions rounded to 1 decimal place (i.e., 5, 5.5).) Scenario ($ in millions) Current Noncurrent Liability Liability Check Prepare the liability section of a classified balance sheet for Nevada Harvester at December 31, 2021. Accounts payable and accruals are $19 million. (Enter your answers in millions rounded to 1 decimal place, (i.e., 5,500,000 should be entered as 5.5).). NEVADA HARVESTER CORPORA Balance Sheet (partiai) At December 31, 2021 Sin millions) Current Liabilities Current portion of long-term debt: NI + Total Current Liabilities Long-Term Debt Currently maturing debt classified as long-term: + LII 1 IZ TUT Total Long-term Liabilities Prey 5 of 5 I N
