Chapter 10, Problem 7BP

a)

To determine

Prepare the current liabilities and long-term liabilities sections of NUC’s classified balance sheet as of December 31, 2018.

b)

To determine

Explain briefly the way the information in which each of the six numbered paragraphs affected the presentation of the company’s liabilities.

c)

To determine

Compute Company NUC’s (1) the debt ratio and (2) the interest coverage ratio.

d)

To determine

Based on the information stated in problem, indicate whether this company appears to be an outstanding, medium, or poor long-term credit risk. Conclude with specific reasons.