Green Earth Homes, Inc., builds environmentally sensitive structures. The company's $2021$ revenues totaled $$2,825$ million. At December $31,2021,$ and $2020,$ the company had, respectively, $$663$ million and $$593$ million in current assets. The company's balance sheets and income statements reported the following amounts:

$($Click the icon to view the amounts.$)$

Read the requirements.

Requirement $1.$ Describe each of Green Earth's long$-$term liabilities and state how the liability arose.

Choose the correct liability from the list that best fits the description provided.

Long$-$term bonds payable

The amount that the company expects to pay after the coming year, the result from the company borrowing money.

The result of timing differences between GAAP and tax accounting methods $($such as depreciation$).$ Income tax expense might differ between GAAP book income $("$Income Tax Expense"$)$ and taxable income according to Internal Revenue regulations $("$Income Tax Payable"$).$

Requirements

Describe each of Green Earth's long$-$term liabilities and state how the liability arose.

What were the company's total assets at December $31,2021?$ Evaluate the company's leverage and debt ratios at the end of $2020$ and $2021.$ Use year$-$end figures in place of averages where needed for calculating the ratios in this exercise. Did the company improve, deteriorate, or remain about the same over the year?