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Finance : Current Liabilities

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Cardinal Company has the following obligations at December 31: (a) a note payable for $100,000 due in 2 years. (b) a 10-year mortgage payable of $300,000 payable in ten $30.000 annual payments. (c) interest payable of $15,000 on the mortgage. and (d) accounts payable of $60.000. For each obligation, indicate whether it should he classified as a current liability. (Assume an operating cycle of less than one year).

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Solution Summary

Current liabilities are investigated in the solution.