The accounting records of Brownfield Foods, Inc., include the following items at December 31, 2016:

1. Show how each relevant item would be reported on the Brownfield Foods, Inc., classified balance sheet, including headings and totals for current liabilities and long-term liabilities.
2. Answer the following questions about Brownfield Food's financial position at December 31, 2016:
a. What is the carrying amount of the bonds payable (combine the current and long-term amounts)?
b. Why is the interest-payable amount so much less than the amount of interest expense?
3. How many times did Brownfield Foods cover its interest expense during 2016?
4. Assume that all of the existing liabilities are included in the information provided. Calculate the leverage ratio and debt ratio of the company. Use year-end figures in place of averages where needed for the purpose of calculating ratios in this problem. Evaluate the health of the company from a leverage point of view. What other information would be helpful in making your evaluation?
5. Independent of your answer to (4), assume that Footnote 8 of the financial statements includes commitments for long-term operating leases over the next 15 years in the amount of $3,900,000. If the company had to capitalize these leases in 2016, how would it change the leverage ratio and the debt ratio? How would this impact your assessment of the company's health from a leverage point of view?

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Mortgage note payable, $ 95,000 Accumulated depreciation, current portion Projected pension equipment 166,000 455,000 Discount on bonds pa benefit obligation Bonds payable, long-term.. 300,000 Mortgage note payable, 23,000 340,000 745,000 all long-term).. Operating income. long-term... 316,000 Bonds payable, current portion.. 200,000 Pension plan assets Equipment (market value Interest payale. 405,000 74,000