Lister Company intends to refinance a portion of its short-term debt next year and is negotiating a long-term financing agreement with a local bank. This agreement will be noncancelable and will extend for 2 years. The amount of short-term debt that Lister Company can exclude from its statement of financial position at December 31 a. May exceed the amount available for refinancing under the agreement. b. Depends on the demonstrated ability to consummate the refinancing. c. Must be adjusted by the difference between the present value and the market value of the short-term debt. d. Is reduced by the proportionate change in the working capital ratio.
Lister Company intends to refinance a portion of its short-term debt next year and is negotiating a long-term financing agreement with a local bank. This agreement will be noncancelable and will extend for 2 years. The amount of short-term debt that Lister Company can exclude from its statement of financial position at December 31 a. May exceed the amount available for refinancing under the agreement. b. Depends on the demonstrated ability to consummate the refinancing. c. Must be adjusted by the difference between the present value and the market value of the short-term debt. d. Is reduced by the proportionate change in the working capital ratio.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter14: Financing Liabilities: Bonds And Long-term Notes Payable
Section: Chapter Questions
Problem 28E: On January 1, 2019, Northfield Corporation becomes delinquent on a 100,000, 14% note to First...
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Lister Company intends to refinance a portion of its short-term debt next year and is negotiating a long-term financing agreement with a local bank. This agreement will be noncancelable and will extend for 2 years. The amount of short-term debt that Lister Company can exclude from its
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