Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. higgins company presently has $3,000,000 of notes

Higgins Company presently has $3,000,000 of notes payable with Star National Bank maturing March 15,...

80.2K

Verified Solution

Question

Accounting

image
Higgins Company presently has $3,000,000 of notes payable with Star National Bank maturing March 15, 2020. On February 10, 2020, before issuance of its financial statements for 2019, Higgins Company entered into a financing agreement with Cleveland Bank, allowing Higgins Company to borrow up to $8,000,000 at any time through 2020 . The company intends to borrow $5,000,000 under the agreement with Cleveland and liquidate the notes payable to Star National Bank. Based on the above information, the total short-term debt reported as a current liability as of the December 31,2019 balance sheet date is: a. $0. b. $3,000,000. c. $4,000,000. d. 58,000,000

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Last year, Dollar General had $7,000 in sales, and cost of goods sold was $4,000. Depreciation...

Finance
Q

Prove the following theorem: In a Pasch geometry, a quadrilateral is a convex quadrilateral if and only...

Advance Math
Q

Which of these is NOT an aspect of the micturition reflex arc?It is stimulated by mechanoreceptors.The...

Medical Sciences
Q

write several reasons to point the importance to do lab Testing for materials in structural engineering...

Civil Engineering
Q

se the graphing tool to graph the equation Use the intercepts when drawing the line...

Algebra
Q

Using an example, discuss the meaning of the term risk assessment matrix

Accounting
Q

Cul de las siguientes no se considerara una motivacin para cometer fraude? A. Problemas financieros...

Accounting
Q

Scarborough Company has two products: C and D. The company uses activity-based costing. The estimated...

Accounting
Q

15. On January 1, 2019, IRCS Company obtained an $88,000, seven year 5% installment note...

Accounting
Q

If sales are $804,000, variable costs are 69% of sales, and operating income is $267,000,...

Accounting
Q

Intro You've estimated the following cash flows (in $) for two mutually exclusive projects: Year...

Finance
Q

activity volume in units total costs Oct 85 Nov 75...

Accounting