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    Classification of liabilities & preparation of balance sheet for Cyclone Inc.

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    Cyclone Inc. reports the following liabilities on the Jan 31, 2007 balance sheet and notes to the financial statements:

    Accounts payable 3263.9 Notes payable-long term 5746.7
    Accrued pension liab. 1215.2 Operating leases 1641.7
    Accrued liability 1258.1 Loans payable-long term 335.6
    Bonds payable 1961.2 Payroll-related liability 558.1
    Current portion of Short term borrowing 2563.6
    long term debt 1992.2 Unused operating line 3337.6
    Income tax payable 235.2 Warranty liability current 1417.3

    A. Identify which above liability are likely current and which are likely long term. If not neither explain why.

    B. Prepare a balance sheet for Cyclone, Inc. as of Jan 31, 2007.

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    Solution Summary

    The solution calculates the classification of liabilities and preparation of balance sheet.