Chapter 13, Problem 3CA

To determine

Refinancing: Refinancing can be defined as the change in the structure of loan from another source which is profitable for customer.

(a)

To determine the classification of the obligation for the given situation.

To determine

(b)

To explain: To explain whether the transaction have any impact on the balance sheet classification at December 31, 2017.

To determine

(c)

To determine whether the $10,000,000 debt maturing in March 2018 be included in current liabilities at December 31, 2017.

To determine

(d)

(1) To determine whether the $10,000,000 be classified as current on the balance sheet at December 31, 2017.

(2) To determine whether disclosure of the refinancing method is required or not.