Problem:
Among the short-term obligations of Daisy Company as of December 31, the balance sheet date, are notes payable totaling $250,000 with the Madison National Bank. These are 90-day notes, renewable for another 90-day period.
Required:
These notes should be classified on the balance sheet of Daisy Company as:
- deferred charges
- long-term liabilities
- intermediate debt
- current liabilities
Note: Explain all calculation and formulas.