Problem $13-3($Algo$)$ Current$-$noncurrent classification of debt; financial statement effects $[$L$013-1,13-4]$

The balance sheet at December $31,2024,$ for Nevada Harvester Corporation includes the liabilities listed below:

a$.12\%$ bonds with a face amount of $$37$ million were issued for $$37$ million on October $31,2015.$ The bonds mature on October $31,2035.$ Bondholders have the option of calling $($demanding payment on$)$ the bonds on October $31,2025,$ at a redemption price of $$37$ million. Market conditions are such that the call is not expected to be exercised.

b$.$ Management intended to refinance $$11\mathrm{.}7$ million of its $15\%$ notes that mature in May $2025.$ In early March, prior to the actual issuance of the $2024$ financial statements, Nevada Harvester negotiated a line of credit with a commercial bank for up to $$5\mathrm{.}5$ million any time during $2025.$ Any borrowings will mature two years from the date of borrowing.

c$.$ Noncallable $14\%$ bonds with a face amount of $$22\mathrm{.}0$ million were issued for $$22\mathrm{.}0$ million on September $30,2005.$ The bonds mature on September $30,2025.$ Sufficient cash is expected to be available to retire the bonds at maturity.

d$.$ A $$8$ million $12\%$ bank loan is payable on October $31,2030.$ The bank has the right to demand payment after any fiscal year$-$end in which Nevada Harvester's ratio of current assets to current liabilities falls below a contractual minimum of $1\mathrm{.}7$ to $1$ and remains so for six months. That ratio was $1\mathrm{.}45$ on December $31,2024,$ due primarily to an intentional temporary decline in inventory levels. Normal inventory levels will be reestablished during the first quarter of $2025.$

Required:

For each liability listed above, what amount will be reported as a current liability and as a noncurrent liability on the December $31,2024$ balance sheet?

Prepare the liability section of a classified balance sheet for Nevada Harvester at December $31,2024.$ Accounts payable and accruals are $$21$ million.

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Required $1$

Required $2$

Prepare the liability section of a classified balance sheet for Nevada Harvester at Dece accruals are $$21$ million.

Note: Enter your answers in millions rounded to $1$ decimal place, $($i$.$e$.,5,500,000$ shou

NEVADA HARVESTER CORPORATION

Balance Sheet $($partial$)$

At December $31,2024$

$($$ in millions$)$

Current Liabilities

Current portion of long$-$term debt:

Total Current Liabilities

Long$-$Term Debt

Currently maturing debt classified as long$-$term:

Complete this question by entering your answers in the tabs below.

Required $1$

Required $2$

Prepare the liability section of a classified balance sheet for Nevada Harvester at Dece accruals are $$21$ million.

Note: Enter your answers in millions rounded to $1$ decimal place, $($i$.$e$.,5,500,000$ shou

NEVADA HARVESTER CORPORATION

Balance Sheet $($partial$)$

At December $31,2024$

$($$ in millions$)$

Current Liabilities

Current portion of long$-$term debt:

Total Current Liabilities

Long$-$Term Debt

Currently maturing debt classified as long$-$term: