A company has 3500000 of short-term debt that comes due on, Ask an Expert

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A company has $3,500,000 of short-term debt that comes due on March 12th. On February 5th, they pay off the $3,500,000. On February 6th, they issue $3,000,000 of stock and use the proceeds to replenish some of the cash they used to pay the loan on February 5th. What amount of the original $3,500,000 can the company reclassify as long-term debt and why?

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9971691

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