General Mills is a multibillion-dollar company that makes and sells products used in the kitchens of most American homes. The Company's annual report included the following note:

Should General Mills classify the short-term borrowing as current or noncurrent debt based on this ability to borrow money to refinance the debt if needed? If you were a member of the management team, explain what you would want to do and why. If you were a financial analyst, would your answer be different.

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We have a revolving credit agreement expiring in two years that provides for a credit line (which permits us to borrow money when needed). This agreement provides us with the opportunity to refinance short-term borrowings on a long-term basis.