The accounting records of Brighton Foods, Inc., include the following items at December 31, 2020:

{Requirements}
1. Why is the interest-payable amount so much less than the amount of interest expense?
2. Assume that all of the existing liabilities are included in the information provided. Calculate the leverage ratio and debt ratio of the company. Evaluate the health of the company from a leverage point of view. What other information would be helpful in making your evaluation?
3. Independent of your answer to (2), assume that Footnote 8 of the financial statements discloses commitments for operating leases over the next 15 years in the amount of \(\$ 3,000,000\). If the company had to capitalize these leases in 2020 , how would it change the leverage ratio and the debt ratio? How would this change impact youtr assessment of the company's health from a leverage point of view?

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Mortgage note payable, current portion.......... Accumulated pension benefit obligation... Bonds payable, long-term. Mortgage note payable, long-term Bonds payable, current portion. Interest expense... Total assets. $ 92,000 Accumulated depreciation $4,500,000 equipment....... 166,000 450,000 Discount on bonds payable 200,000 (ail long-term).. 25,000 Operating income... 370,000 318,000 Equipment.. 744,000 500,000 Pension plan assets 229,000 (market value)........... 420,000 Interest payable....... 75,000