Short Term Debt Expected to Be Refinanced While auditing the 2007 financial statements of Warder Corporation, you found evidence that the following were not included in its current liabilities on the December 31, 2007 balance sheet:
1. Convertible bonds maturing in 60 days that were never converted.
2. Note payable due two months after the balance sheet date, with refinancing agreement entered into four weeks after the balance sheet date.
3. Notes payable of Warder’s completely owned subsidiary due its stockholders and payable upon demand.
4. Deposits from customers on equipment ordered by them from Warder.
Required
Discuss the assumptions needed for Warder to correctly exclude the previously mentioned items from the December 31, 2007 current liabilities. The balance sheet was issued on March 3, 2008.