Transit has outstanding $7\mathrm{.}8\%$ bonds with a face amount of $$77$ million. The bonds mature on July $31,2030.$ Bondholders have the option of calling $($demanding payment on$)$ the bonds on July $31,2025,$ at a redemption price of $$77$ million. Market conditions are such that the call option is not expected to be exercised.

A $$20$ million $8\%$ bank loan is payable on October $31,2027.$ The bank has the right to demand payment after any fiscal year$-$end in which Transit$$s ratio of current assets to current liabilities falls below a contractual minimum of $1\mathrm{.}9$ to $1$ and remains so for six months. That ratio was $1\mathrm{.}75$ on December $31,2024,$ due primarily to an intentional temporary decline in parts inventories. Normal inventory levels will be reestablished during the sixth week of $2025.$

Transit management intended to refinance $$44$ million of $6\%$ notes that mature in May $2025.$ In late February $2025,$ prior to the issuance of the $2024$ financial statements, Transit negotiated a line of credit with a commercial bank for up to $$39$ million any time during $2025.$ Any borrowings will mature two years from the date of borrowing.

Transit is involved in a lawsuit resulting from a dispute with a food caterer. On February $13,2025,$ judgment was rendered against Transit in the amount of $$46$ million plus interest, a total of $$47$ million. Transit plans to appeal the judgment and is unable to predict its outcome though it is not expected to have a material adverse effect on the company.

Required:

How should the $7\mathrm{.}8\%$ bonds be classified by Transit among liabilities in its balance sheet?

How should the $8\%$ bank loan be classified by Transit among liabilities in its balance sheet?

How should the $6\%$ notes be classified by Transit among liabilities in its balance sheet?

How should the lawsuit be reported by Transit?

Calculate the total current liabilities, total long$-$term liabilities, and total liabilities of a classified balance sheet for Transit Airlines at December $31,2024.$ Transit's accounts payable and accruals were $$52$ million.