In which of the following instances would a liability that would otherwise be presented as current is presented as noncurrent?

a. The liability is payable on demand but the entity estimates that it is probable that the lender will not demand payment within 12 months after the reporting period.

b. The liability is payable on demand but the lender promises the entity after the reporting period that the lender will not demand payment in the next 12 months.

c. The entity enters into a refinancing agreement after the reporting period but before the financial statements are authorized for issue.

d. The entity enters into a refinancing agreement and the refinancing agreement is completed by the balance sheet date.

2.Below are the account balances prepared by the bookkeeper for izone Company as of December 31, 20x1:

Assets

Liabilities

Cash

30,000

Accounts payable

40,000

Accounts receivable, net

88,000

Notes payable

200,000

Inventory

80,000

Prepaid income tax

16,000

Prepaid assets

10,000

Investment in subsidiary

20,000

Land held for sale

56,000

Property, plant and equipment

100,000

Totals

400,000

240,000

Additional information:

- Cash consists of the following:

Petty cash fund (unreplenished petty cash expenses, 3,000)4,000

Cash in bank(20,000)

Payroll fund28,000

Tax fund14,000

Cash to be contributed to a sinking fund set up for the retirement

of bonds maturing on December 31, 20x34,000

Total Cash30,000

- Checks amounting to 61,000 were written to suppliers and recorded on December 30, 20x1, resulting to a bank overdraft of 20,000. The checks were mailed on January 5, 20x2.

- Accounts receivable consists of the following:

Accounts receivable80,000

Allowance for uncollectability(10,000)

Credit balance in customers' accounts(6,000)

Selling price of unsold goods sent on consignment to nct inc.

at 120% of cost and excluded from izone's inventory 24,000

Accounts receivable, net88,000

-The inventory includes cost of goods amounting to 20,000 that are expected to be sold beyond 12 months but within the ordinary course of business. Also, the inventory includes cost of consigned goods received on consignment from sm ent. amounting to 10,000.

-Prepaid income tax represents excess of payments for quarterly corporate income taxes during 20x1 over the actual annual corporate income tax as of December 31, 20x1.

-Prepaid assets includes a 4,000 security deposit on an operating lease which is expected to expire on March 31, 20x3. The security deposit will be received on lease expiration.

-The land qualified for classification as "asset held for sale" under PFRS 5 Non-current Assets Held for Sale and Discontinued Operations as of December 31, 20x1.

-Accounts payable is net of 12,000 debit balance in suppliers' accounts. Accounts payable includes the cost of goods held on consignment from sm ent. which were included in inventory.

-The notes payable are dated July 1, 20x1 and are due on July 1, 20x4. The notes payable bears an annual interest rate of 10%. Interest is payable annually.

How much is the adjusted working capital?

a.334,000

b.289,000

c.264,000

d.215,000