Liabilities can be listed as both long-term and short-term, based on the time frame for paying them. You have a notes payable which was issued to purchase inventory and it was issued on 10/15/xx and is for 90 days. Determine how to report this on balance sheet and support your reason for this reporting.

• The company knows they cannot pay this note in 90 days and is working to convert it to be payable over 15 months. Does this change the method you report on the balance sheet? Why or why not?