Click to Launch ctive Preser Book to know Vic work scussion ccounting for Objectives Learning Act active Presen -to-Know Vic nework Discussion) Enter Chapter 10 in the Subject Box This is a required activity. You must post before viewing other student's posts. Answer the lead question. Additionally, expand the discussion by posting two responses to your peers' posts. Instructor - Lead Question in Chapter 4 you learned about the current ratio (text page 224). Review that material. Acme Corporation uses the calendar year as their fiscal year for reporting purposes. Acme Corporation is owned 100% by Jesse Smith. Jesse Smith is quite wealthy - he has over $3 million in a personal savings account which is currently earning 2 one hundredths of 1% interest (or.0002 rate resulting in $600 per year). He also has many other investments. Acme Corporation has $300,000 of current assets. Acme has Accounts Payable of $40,000 and various Payroll liabilities totaling $109,000. Acme also has a Note Payable in the amount of $800,000. There are no other liabilities. Interest has been paid every year when due on December 31. The Note Payable is due in $200,000 installments on June 30 of each year for the next 4 years. The current interest rate on the note is 4%. However, according to the loan terms, if Acme's current ratio falls below 2, the interest rate will automatically increase to 7%. Since the note is due in installments over the next 4 years, management is presenting the Note on the balance sheet as a long term liability. Is Acme's management reporting their balance sheet appropriately? What recommendations do you have for management? How do these recommendations impact the current ratio? 4:53 PM 7/10/2020 Click to Launch ctive Preser Book to know Vic work scussion ccounting for Objectives Learning Act active Presen -to-Know Vic nework Discussion) Enter Chapter 10 in the Subject Box This is a required activity. You must post before viewing other student's posts. Answer the lead question. Additionally, expand the discussion by posting two responses to your peers' posts. Instructor - Lead Question in Chapter 4 you learned about the current ratio (text page 224). Review that material. Acme Corporation uses the calendar year as their fiscal year for reporting purposes. Acme Corporation is owned 100% by Jesse Smith. Jesse Smith is quite wealthy - he has over $3 million in a personal savings account which is currently earning 2 one hundredths of 1% interest (or.0002 rate resulting in $600 per year). He also has many other investments. Acme Corporation has $300,000 of current assets. Acme has Accounts Payable of $40,000 and various Payroll liabilities totaling $109,000. Acme also has a Note Payable in the amount of $800,000. There are no other liabilities. Interest has been paid every year when due on December 31. The Note Payable is due in $200,000 installments on June 30 of each year for the next 4 years. The current interest rate on the note is 4%. However, according to the loan terms, if Acme's current ratio falls below 2, the interest rate will automatically increase to 7%. Since the note is due in installments over the next 4 years, management is presenting the Note on the balance sheet as a long term liability. Is Acme's management reporting their balance sheet appropriately? What recommendations do you have for management? How do these recommendations impact the current ratio? 4:53 PM 7/10/2020