Liabilities (as of December 31 year-end):
- Notes Payable: $79,000
- Current Portion: $4,900
As of the December 31 year-end, Organic Foods' liabilities on the balance sheet consist of $79,000 in notes payable.
Of this total, $4,900 represents the current portion, indicating the amount due within the next year.
On the liabilities section of the balance sheet, the presentation would typically follow a format that distinguishes between current and long-term liabilities. The section would look as follows:
Liabilities:
- Current Liabilities:
- Notes Payable (Current Portion): $4,900
- Long-Term Liabilities:
- Notes Payable (Remaining): $74,100
This breakdown provides clarity regarding the maturity of the notes payable.
The current portion represents the amount that is due within the next year, while the remaining portion falls under long-term liabilities, signifying obligations extending beyond the coming year.
It's crucial for stakeholders, such as investors and creditors, to assess the composition of a company's liabilities to understand its short-term and long-term financial obligations.
This information aids in evaluating the company's liquidity, financial health, and its ability to meet its debt obligations in the near and distant future.