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Business, 07.10.2021 19:30 julie426

Specify what amounts will be reported as a current liability and/or long-term liability on the December 31, 2018 financial statements. A $9 million 12% bank loan is payable on October 31, 2024. The bank has the right to demand payment after any fiscal year-end in which the current ratio falls below a contractual minimum of 1.6, and remains so for four months. That ratio was 1.3 on December 31, 2018, but it is expected to go up to 1.7 during February 2019.

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