Acme corporation uses the calendar year as their fiscal year for reporting purposes. acme corporation is owned 100% by jesse smith. jesse smith is quite wealthy - he has over $3 million in a personal savings account which is currently earning 2 one hundredths of 1% interest (or .0002 rate resulting in $600 per year). he also has many other investments. acme corporation has $300,000 of current assets. acme has accounts payable of $40,000 and various payroll liabilities totaling $109,000. acme also has a note payable in the amount of $800,000. there are no other liabilities. interest has been paid every year when due on december 31. the note payable is due in $200,000 installments on june 30 of each year for the next 4 years. the current interest rate on the note is 4%. however, according to the loan terms, if acme's current ratio falls below 2, the interest rate will automatically increase to 7%. since the note is due in installments over the next 4 years, management is presenting the note on the balance sheet as a long term liability. is acme's management reporting their balance sheet appropriately? what recommendations do you have for management? how do these recommendations impact the current ratio?