Question

on December 31, 2017 Martin 2 Cc any has 7,0 é ao Race va es are expected ta range het een ה cw cf S6,01 balarce sheet is issued on February 15.2018. at short-term debt in tic torm at no es na aal 0 n May to a n at $HC 2 ם 00n。cto er to Gotha State Eank oe in 201 H On January 28 2 n Martinez cnte ta a r hnan r agro m nt th Gatham that wll permit it to harra ur ng the year 01B. The m erest cast cf tne a urn shart-term debt s 15%, and the new agreement calls tar a uctuating terest a 5% r the grass amo t at its accounts ce able notes cue n 2022. Martinez s Decem be up to t 1% abovethe prime rate on a 2017 Popare a partial aalance sheet tor Martinez at D combe 31 2017 sho ing how its S7,0dé,000 at shart term ㏄bt should he presented. Enter accountrimeon yand do not pro idedesen at n ormation g MARTINEZ COMPANY Partial Balanca Sheet

Answer 1

Answer-

Martinez Company
Partial Balance Sheet
December 31,2017
Current Liability
Notes Payable	Note 1	$                                         3,096,250.00
Long Term Debit
Notes Payable expected to be refinanced in 2018	Note 1	$                                         3,096,250.00
		$                                          7,006,000.00

Note 1

Note payable expected to be refinanced-Minimum & Maximum

6,015,000*65%=$3,909,750

9,002,000*65%=$5,851,300

Total AR=$7,006,000

Expected Minimum refinanced debt=$3,909,750

Long term Debt =3,909,750

Short term Debt=Total AR-Expected refinanced debt

= 7,006,000-3,909,750

= 3,096,250