The balance sheet at December 31, 2024, for Nevada Harvester Corporation includes the liabilities listed below:...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
The balance sheet at December 31, 2024, for Nevada Harvester Corporation includes the liabilities listed below: a. 8% bonds with a face amount of $50 million were issued for $50 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 $50 million. Market conditions are such that the call is not expected to be exercised. b. Management intended to refinance $8.4 million of its 9% 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 $4.2 million any time during 2025. Any borrowings will mature two years from the date of borrowing. c. Noncallable 7% bonds with a face amount of $23.0 million were issued for $23.0 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 $17 million 9% 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 1.7 to 1 and remains so for six months. That ratio was 1.45 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: 1. 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? 2. Prepare the liability section of a classified balance sheet for Nevada Harvester at December 31, 2024. Accounts payable and accruals are $27 million. Complete this question by entering your answers in the tabs below. Required Required 1 2 Prepare the liability section of a classified balance sheet for Nevada Harvester at December 31, 2024. Accounts payable and accruals are $27 million. Note: Enter your answers in millions rounded to 1 decimal place, (i.e., 5,500,000 should be entered as 5.5). NEVADA HARVESTER CORPORATION Balance Sheet (partial) At December 31, 2024 ($ in millions) Current Liabilities Accounts payable and accruals 9% notes payable, due May 2025 Current portion of long-term debt: 7% bonds payable, due September 30, 2025 8% bonds payable, due October 31, 2035, redeemable on October 31, 2025 Total Current Liabilities Long-Term Debt Currently maturing debt classified as long-term: 9% loan payable, due October 2030 Total Long-term Liabilities Total Liabilities $ 27.0 0,0 27.0 0.0 $ 27.0 Required 1 Required 2 > The balance sheet at December 31, 2024, for Nevada Harvester Corporation includes the liabilities listed below: a. 8% bonds with a face amount of $50 million were issued for $50 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 $50 million. Market conditions are such that the call is not expected to be exercised. b. Management intended to refinance $8.4 million of its 9% 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 $4.2 million any time during 2025. Any borrowings will mature two years from the date of borrowing. c. Noncallable 7% bonds with a face amount of $23.0 million were issued for $23.0 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 $17 million 9% 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 1.7 to 1 and remains so for six months. That ratio was 1.45 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: 1. 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? 2. Prepare the liability section of a classified balance sheet for Nevada Harvester at December 31, 2024. Accounts payable and accruals are $27 million. Complete this question by entering your answers in the tabs below. Required Required 1 2 Prepare the liability section of a classified balance sheet for Nevada Harvester at December 31, 2024. Accounts payable and accruals are $27 million. Note: Enter your answers in millions rounded to 1 decimal place, (i.e., 5,500,000 should be entered as 5.5). NEVADA HARVESTER CORPORATION Balance Sheet (partial) At December 31, 2024 ($ in millions) Current Liabilities Accounts payable and accruals 9% notes payable, due May 2025 Current portion of long-term debt: 7% bonds payable, due September 30, 2025 8% bonds payable, due October 31, 2035, redeemable on October 31, 2025 Total Current Liabilities Long-Term Debt Currently maturing debt classified as long-term: 9% loan payable, due October 2030 Total Long-term Liabilities Total Liabilities $ 27.0 0,0 27.0 0.0 $ 27.0 Required 1 Required 2 >
Expert Answer:
Answer rating: 100% (QA)
Current and Noncurrent Liabilities for Nevada Harvester Corporation 1 Classification of Liabilities ... View the full answer
Related Book For
Posted Date:
Students also viewed these accounting questions
-
The balance sheet at December 31, 2018, for Nevada Harvester Corporation includes the liabilities listed below: a. 11% bonds with a face amount of $40 million were issued for $40 million on October...
-
The balance sheet at December 31, 2024, for Nevada Harvester Corporation includes the liabilities listed below: a. 11% bonds with a face amount of $40 million were issued for $40 million on October...
-
Select the best answer. 1. A local chapter of the Society for Protection of the Environment beneted from the voluntary services of two attorneys. One served as a member of the Society's board of...
-
A sales tax of $1 per unit of output is placed on a particular firm whose product sells for $5 in a competitive industry with many firms. a) How will this tax affect the cost curves for the firm? b)...
-
Brad Nelson, Inc. issued $600,000 of 7%, six-year bonds payable on January 1, 2018. The market interest rate at the date of issuance was 6%, and the bonds pay interest semiannually. Requirements 1....
-
How does an auditor evaluate the effectiveness and reliability of a client's control procedures over revenue /receipt cycle activities?
-
The questions below relate to determining the CUER in audit sampling for tests of controls, using the following table: Required a. Calculate SER for each of columns 1 through 4 and use this to...
-
Consider one disk with 2000 cylinders, numbered 0 to 1 999. Assume the current position of head is at cylinder 500. The request queue is given as follows: 103, 80, 1400, 813, 1714, 748, 1500, 1100...
-
Consider the pair of equation y-8x = 2 and y + 7 = 3x. (a) Solve each equation for y as an expression in x. (b) Equate the expressions found in part (a) to obtain an equation in the variable x. (c)...
-
What are different binary tree traversal techniques?
-
What is AVL Tree?
-
Implement preorder traversal of binary tree using recursion?
-
Why do we want to use BST?
-
Explain the difference between binary tree and BST with an example?
-
Write an essay that discusses the concepts of duty and law. Plato and Socrates, the apology and the Crito; Henry David Thoreau, civil disobedience; martin Luther king, letter from a Birmingham jail;...
-
Discuss whether responsible human resources management should apply different standards for the home company and suppliers, for developed countries and developing countries, and for large companies...
-
For installation and operation of a pipeline for an incompressible fluid, the total cost (in dollars per year) can be represented as follows: \[C=C_{1} D^{1.5} L+C_{2} m \Delta p / ho\] where...
-
Heavy fuel oil, initially semisolid at $15^{\circ} \mathrm{C}$ is to be heated and pumped through a $15 \mathrm{~cm}$ diameter (inside) pipe at the rate of $20000 \mathrm{~kg} / \mathrm{h}$. The pipe...
-
We are interested to produce $P$ in the reaction $A ightarrow P$ using a continuous reactor at $v=240$ liters/ hr with $C_{A_{0}}=3$ moles/liter. However, it is noticed that there is a second...
Study smarter with the SolutionInn App