Company F entered into a loan agreement for a 10 year, $10 million loan on 7/1/2017. Principal is to be paid back $500,000 every 6 months for 10 years, with the first payment due on 12/31/17. The bank required that Company F maintain certain financial covenants, including that at each month-end, the current ratio must be in excess of 2 to 1. In Scenario 1, Company F's current ratio was 1.8 to 1. In Scenario 2, Company F's current ratio was 2.3 to 1. How should Company F's debt be presented (i.e. Current and Noncurrent) in each of the above scenarios at 12/31/18? Note that Company F has made all payments on their due date. Scenario 1 Scenario 2 Current Noncurrent Current Noncurrent a. $8,500,000 $1,000,000 $9,500,000 $0 b. $1,000,000 $7,500,000 $8,500,000 $0 C. $9,500,000 $0 $8,500,000 $1,000,000 d. $8,500,000 $0 $1,000,000 $7,500,000 a. b. . d. Company L has an investment portfolio comprised of stocks publicly traded on the New York Stock Exchange. To test the valuation of these investments, the auditor sent a confirmation to Company L's investment custodian, Bank D. Bank D completed the confirmation and returned it directly to Company L's auditors, and included a detail of all of Company L's investments, the number of shares owned of each investment, and the share's market price on the final day of the year. Company L agreed the investments per the confirmation to the Trial Balance and recalculated the confirmation to verify mathematical accuracy. Were the auditor's procedures over valuation of investments sufficient? Yes