CAN ANYONE HELP?
Python.com owes $6 million on notes payable that will come due for payment in $6 million on notes payable that will come due for payment in $1.5 million annual installments. The company has used its cash to advertise heavily in the competitive dotcom business environment. The result is that cash is scarce, and Python.com’s management doesn’t know where next year’s note payment will come from. Python.com has prepared its balance sheet at December 31, 20x4 and its reports the following
Liabilities
Curent:
Accounts payable…………………………………………………………………$1,900,000
Salary Payable and other accrued Liabilities…………………………. 300,000
Unearned revenue collected in advance ………………………………… 500,000
Income tax payable…………………………………………………………………… 200,000
Total current liabilities………………………………………………………………2,900,000
Long Term:
Notes payable ………………………………………………………………………….. 6,000,000

What is wrong with the way Python.com reported its liabilities? Why did Python.com report its liabilities this way? What is unethical about this way of reporting these liabilities? Who can be harmed as a result?

The long term liability of $6 million is wrong a portion of that is short term. Do not know why they showed it this way. It is unethical because it is not in accordance with generally accepted accounting principles.Who will be hurt anyone thinking that there current liabilities are a lower amount.

Thank You So Much