p7-45A THE ACCOUNTING RECORDS OF BRIGHTON FOODS, INC., INCLUDE THE FOLLOWING ITEMS AT DECEMBER 31,2020: CURRENT PORTION

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p7-45A THE ACCOUNTING RECORDS OF BRIGHTON FOODS, INC., INCLUDE
THE FOLLOWING ITEMS AT DECEMBER 31,2020:
CURRENT PORTION
REQUIREMENTS
1. WHY IS THE INTEREST PAYABLE AMOUNT SO MUCH LESS THAN THE
AMOUNT OF INTEREST EXPENSES?
2. ASSUME THAT ALL OF THE EXISTING LIABILITIES ARE INCLUDED IN
THE INFORMATION PROVIDED, CALCULATE THE LEVERAGE RATIO
AND DEBT RATIO OG THE COMPANY. EVALUATE THE HEALTH OF THE
COMPANY FROM A LEVERAGE POINT OF VIEW. WHAT OTHER INFORMATION
WOULD BE HELPFUL IN MAKING YOUR EVALUATION?
3.INDEPENDENT OF YOUR ANSWER TO (2), ASSUME THAT FOOTNOTE
8 OF THE FINANCIAL STATEMENT DISCLOSES COMMITMENTS FOR
OPERATING
LEASES OVER THE NEXT 15 YEARS IN THE AMOUNT OF $3,000,000.IF THE
COMPANY HAD TO CAPITALIZE THESE LEASES IN 2020, HOW WOULD IT CHANGE
THE
LEVERAGE RATIO AND THE DEBT RATIO? HOW WOULD THIS CHANGE IMPACT
YOUR ASSESSMENT OF THE COMPANY HEALTH FROM A LEVERAGE POINTS
OF
VIEW?