Chapter 13, Problem 1CMA

To determine

Statement of Financial Position:

 Statement of financial position is also known as Balance Sheet. Statement of financial position is one of the main financial statement which summarizes the assets, the liabilities, and the Shareholder’s equity of a company at a given date.

Refinancing:

Refinancing is method by which a company pays a debt its creditors by borrowing additional money by way of creating second debt to repay the first debt it is done to save cash on interest cost. Refinancing occurs when the business or a person revises the terms of previous credit system, payment schedule and interest rate.

To Estimate: the amount of short-term debt that Company L can exclude from its statement of financial position at December 31, 2016.