Cooper's Inventory Has Been Financed 100% with a Long-Term Note

question 113

Multiple Choice

Cooper's inventory has been financed 100% with a long-term note. The note is coming due in 2016. Cooper has received a commitment from a new lender that permits five-year refinancing of debt up to an amount equal to 50% of inventory, which is expected to range between $14,000 and $20,000 in 2016. At December 31, 2015, how much of the company's currently maturing note payable can be classified as long-term debt?

• A) $7,000
• B) $6,000
• C) $10,000
• D) $9,000

---

Definitions:

Identify And Reply

The act of recognizing a specific issue, query, or communication and providing an appropriate response or answer to it.

Spray And Pray

A communication strategy where a lot of information is dispersed to a large audience, with the hope that some of it will be relevant or taken up by the recipients.

Underscore And Explore

To emphasize and investigate deeply into a particular subject or problem.

Nonverbal Communication

The transmission of messages or signals through a nonverbal platform such as facial expressions, body language, posture, tone of voice, or any other form of communication without the use of words.