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please help, its due tonight and im stuck. The balance sheet at December 31, 2024, for Nevada Harvester Corporation includes the llabillties listed below: a.
please help, its due tonight and im stuck.
The balance sheet at December 31, 2024, for Nevada Harvester Corporation includes the llabillties listed below: a. 11% bonds with a face amount of $28 million were issued for $28 million on October 31, 2015. The bonds mature on October 31 , 2035. Bondholders have the option of calling (demanding payment on) the bonds on October 31, 2025, at a redemption price of $28 million. Market conditions are such that the call is not expected to be exercised. b. Management intended to refinance $8.7 million of its 12% notes that mature in May 2025. In early March, prior to the actual issuance of the 2024 financlal statements. Nevada Harvester negotiated a line of credit with a commercial bank for up to $3.5 millon any time during 2025. Any borrowings will mature two years from the date of borrowing. c. Noncallable 13% bonds with a face amount of $16.5 million were issued for $16.5 million on September 30 , 2005. The bonds mature on September 30,2025 . Sufficient cash is expected to be available to retire the bonds at maturity. d. A $9 million 10\% bank loan is payable on October 31, 2030. The bank has the right to demand payment after any fiscal year-end in which Nevada Harvester's ratio of current assets to current liabilities falls below a contractual minimum of 1.7 to 1 and remains so for six months. That ratio was 1.45 on December 31,2024 , due primarily to an intentional temporary decline in inventory levels Normal inventory levels will be reestabilished during the first quarter of 2025. Required: 1. For each llability listed above, what amount will be reported as a current liability and as a noncurrent llability on the December 31 , 2024 balance sheet? 2. Prepare the liability section of a classified balance sheet for Nevada Harvester at December 31, 2024, Accounts payable and accruals are $20 million. Prepare the liability section of a classified balance sheet for Nevada Harvester at December 31, 2024. Accounts payable and accruals are $20 million. Note: Enter your answers in millions rounded to 1 decimal place, (i.e., 5,500,000 should be entered as 5.5 ) Step by Step Solution
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