· Period 1 Balance Sheet (Dec 31, 2022):

• Current Assets: $150,000
• Current Liabilities: $80,000

· Period 2 Balance Sheet (Dec 31, 2023):

• Current Assets: $180,000
• Current Liabilities: $100,000

·Evaluate Contingent Liabilities: Requirements:

• Identify any contingent liabilities disclosed in the notes to the balance sheet.
• Discuss the nature of contingent liabilities and their potential impact on the company's financial position and performance.
• Explain the criteria for recognizing contingent liabilities and how they are disclosed in financial statements.