Reunion BBQ has $4,000,000 of notes payable due on March 11, 2017, which Reunion intends to refinance. On January 5, 2017, Reunion signed a line of credit agreement to borrow up to $3,500,000 cash on a two-year renewable basis. On the December 31, 2016, balance sheet, Reunion should classify:

$500,000 of notes payable as short-term and $3,500,000 as long-term obligations.

Explanation:

SHORT-TERM debt which is also known as current liabilities can be defined as a company or an organisation financial obligations which are expected to be pay off with one year.

LONG TERM liability which is also known as non current liabilities can be defined as the type of liability which is an obligation that occured from a previous event which is not due within one year of the said date of the balance sheet

$4,000,000 of notes payable due on March 11, 2017 -$3,500,000 cash on a two-year renewable basis

=$500,000 of notes payable as short-term

Therefore On the December 31, 2016, balance sheet, Reunion should classify as :

$500,000 of notes payable as short-term and $3,500,000 as long-term obligations.

a manufacturer of printed circuit boards uses exponential smoothing with trend to forecast monthly demand of its product. at the end of december, the company wishes to forecast sales for january. the estimate of trend through november has been 200 additional boards sold per month. average sales have been around 1000 units per month. the demand for december was 1100 units. the company uses α = 0.20 and β = 0.10. make a forecast including trend for the month of january.