Answer-
Martinez Company | ||
Partial Balance Sheet | ||
December 31,2017 | ||
Current Liability | ||
Notes Payable | Note 1 | $ 3,096,250.00 |
Long Term Debit | ||
Notes Payable expected to be refinanced in 2018 | Note 1 | $ 3,096,250.00 |
$ 7,006,000.00 |
Note 1
Note payable expected to be refinanced-Minimum & Maximum
6,015,000*65%=$3,909,750
9,002,000*65%=$5,851,300
Total AR=$7,006,000
Expected Minimum refinanced debt=$3,909,750
Long term Debt =3,909,750
Short term Debt=Total AR-Expected refinanced debt
= 7,006,000-3,909,750
= 3,096,250