Higgins Company presently has $3,000,000 of notes payable with Star National Bank maturing March 15,...
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Higgins Company presently has $3,000,000 of notes payable with Star National Bank maturing March 15, 2020. On February 10, 2020, before issuance of its financial statements for 2019, Higgins Company entered into a financing agreement with Cleveland Bank, allowing Higgins Company to borrow up to $8,000,000 at any time through 2020 . The company intends to borrow $5,000,000 under the agreement with Cleveland and liquidate the notes payable to Star National Bank. Based on the above information, the total short-term debt reported as a current liability as of the December 31,2019 balance sheet date is: a. $0. b. $3,000,000. c. $4,000,000. d. 58,000,000
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