Answer:
Current liabilities at December 31, 2014 for Irkalla;
$200,000 + $100,000 + $2,000,000 + $1,000,000 = $3,300,000.
Method of reasoning: Accounts payable-exchange and Short-term borrowings consistently fall under "Current Liabilities". Development for Other bank advance has not explicitly given (for example develops June 30, 20 × 5), so we accept it to develop on June 30, 2015. Since development is expected inside 1 year, it additionally falls under current risk as term is just a single year. On the bank credit of $2,000,000, Irkella has damaged the terms, so now this advance is likewise required to be paid off soon and thus it additionally now goes under "Current Liabilities"
Answer:
Current liabilities= $3,300,000
Explanation:
Current liabilities are defined as the amounts that a business owes other parties that is short term, usually less than one year.
This will include all short term obligations that the business has to settle.
When current liabilities are deducted from current assets it gives what is available for business operations.
From the information give
Current liabilities= Accounts payable+ Short term borrowing+ Current portion of bank loan+ Other bank loan that matures on June 30
But since they are in violation of the loan agreement the debtor will be able to collect the whole loan at anytime. So we classify the whole loan amount of $2,000,000 as a current liability. Instead of only $100,000 we consider the whole $2,000,000.
Current liabilities= 200,000+ 100,000+ 2,000,000+ 1,000,000
Current liabilities= $3,300,000
