The Tony Hawk Skate Park was built in early $2024.$ The construction was financed by a $$3,096,000,7\%$ note due in $6$ years, with payments of $$52,784$ required each month. The first year has not been as profitable as hoped. The discussion at the executive board meeting at the end of $2024$ focused on the potential need to obtain additional financing. However, board members are concerned that the company's debt level at the end of $2024$ will make the company appear too risky to additional lenders. The balance of the note at the end of $2024$ is $$2,665,683.$ By the end of $2025,$ the $12$ monthly payments will reduce the balance by an additional $$461,424.$ Separate from the note, the company has the following amounts at the end of $2024$: current assets of $$3,450,000$; current liabilities of $$2,670,000$; total equity of $$4,040,000.$

Jim Trost, the VP of finance, tells board members that he plans to classify the full balance of the note at the end of $2024$ as long$-$term because the full length of the note is six years. He explains that lenders will be more willing to let the company borrow and will offer a lower interest rate if the company reports fewer current liabilities. Plus, he plans to tell lenders that there is no problem with long$-$term solvency because the company long$-$term profits will be used to pay its long$-$term debt.

Required:

$1-$a$.$ Understand the reporting effect: By how much does Jim$$s decision affect the reported amount of current liabilities versus long$-$term liabilities as of December $31,2024?$

$1-$b$.$ Should the $12$ monthly payments to be made during $2025$ be classified as current liabilities or long$-$term liabilities?

$2.$ Specify the options: Calculate the current ratio and the debt to equity ratio at the end of $2024($a$)$ with and $($b$)$ without Jim$$s suggestion.

$3.$ Identify the impact: Can Jim$$s decision affect lenders?

$4.$ Make a decision: Should Jim record the full balance of the note as a long$-$term liability in its balance sheet as of December $31,2024?$