Identify Whether Obligations are Current Liabilities
Please help with the following problem. Provide step by step calculations.
Cardinal Co. has the following obligations at Dec. 31st: (a) a note payable for $100,000 due in 2 yrs., (b) a 10 yr mortgage payable of $300,000 payable in ten $30,000 annual payments, (c) interest payable of $15,000 on the mortgage, and (d) accounts payable of $60,000.
For each obligation, indicate whether it should be classified as a current liability.
(assume an operating cycle of less than one year).