Answer:
Short term debt after the reclasification: 3,352,340
Explanation:
The company expect to borrow from their receivables.
As the lower amount expecteed for the receivables is 6,006,000
we will refinance up to 61% of this amount thus:
6.006.000 x 61% = 3.663.660
This is the amount the company will expect to refinance with new notes payable instead of honor the original note.
short term debt 7,016,000
less <u> 3,663,660 </u>reclassified as long term
new short-debt 3,352,340
