The Following Information Is Given for Airflight Airlines

question 124

Essay

The following information is given for Airflight Airlines:
Airflight had $10,000 of notes coming due on January 30, 2014. On January 4, 2014, the company used $3,000 of excess cash to pay off part of the note. On January 29, 2014, a refinancing of the entire $10,000 was completed. The $3,000 was replaced and the rest of the notes were extended for another two years.
Airflight has negotiated a long-term refinancing contract permitting refinancing of up to 60% of accounts receivable balances. Accounts receivable were expected to range between $12,000 and $16,000 the following year.
Airflight also has negotiated a new long-term refinancing contract permitting refinancing up to 35% of inventory, which is expected to range between $75,000 and $85,000 next year.
Required:
a.On the December 31, 2013 balance sheet, how much of the $10,000 note should be shown as short-term?
b.Airflight has a currently maturing note of $20,000 related to the accounts receivable refinancing contract. How much can be classified as long-term debt at the end of 2013?
c.Compute the amount of the company's currently maturing note payable of $50,000 related to refinancing inventory that must be classified as short-term debt on December 31, 2013.

Understand the legal and ethical considerations in making unilateral changes to employment terms.

Comprehend the challenges and benefits of integrative bargaining in collective bargaining processes.

Identify strategies for employers to engage with employees without violating the National Labor Relations Act.

Analyze the visible aspects of intraorganizational bargaining within unions compared to management.

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Definitions:

Deeds

Legal documents representing the ownership of property or rights.

Contemplation

The action of looking thoughtfully at something for a long time or the act of thinking deeply about something, especially in a spiritual or introspective manner.

Team Concept

Belief in the principle that together everyone can accomplish more than each could do working alone; tapping the constructive power of the group by having clear and elevating goals, a results-driven structure, competent team members, unified commitment, a collaborative climate, standards of excellence, external support and recognition, and principled leadership.

Objectives

Specific, measurable goals that are set to be achieved within a defined timeframe, serving as benchmarks for success or progress.