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Problem 13-3 Current-noncurrent classification of debt [LO13-1, 13-4] The balance sheet at December 31, 2018, for Nevada Harvester Corporation includes the liabilities listed below a

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Problem 13-3 Current-noncurrent classification of debt [LO13-1, 13-4] The balance sheet at December 31, 2018, for Nevada Harvester Corporation includes the liabilities listed below a 10% bord with a face amount of S35 million were issued for $35 million on October 31, 2009 The bonds mature on October 31, b Man gemert intended to refinance $90 million of its 7% notes that mature in May 2019 In early March, prior to the actual issuance 6 23 2029 Bondholders have the option of calling (demanding payment on) the bonds on October 31, 2019, at a redemption price of $35 million. Market conditions are such that the call is not expected to be exercised eBook Ask PiYE of the 2018 financial statements, Nevada Harvester negotiated a time during 2019 A line of credit with a commercial bank for up to $4.0 million any Any borrowings will mature two years from the date of borrowing Nonlable obonds with a face amount of $160 million were ssued for $16 0 million on September 30, 1996. The bonds mature on September 30, 2019. Sufficient cash is expected to be available to retire the bonds at maturity A$27 mal on 6% bank loan ispayable on October 31, 2024 which Nevada Harvesters 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, 2018, due primarily inventory levels will be reestablished during the first quarter of 2019 The bank has the nght to demand payment after any fiscal year end in to an intentional temporary decline in inventory levels. Normal st d Required 1. For each liability Iisted above, what amount will be reported as a current liability on the December 31, 2018 balance sheet? 2. Prepare the iability section of a classified balance sheet for Nevada Harvester at December 31, 2018. Accounts payable and accruals are $16 milion

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