Listed Below Are the Current Liability Section and the Note

Listed below are the current liability section and the note 5 for short-term obligations of the balance sheet of Gaunt Corporation:

5.Short-Term Obligations
Gaunt's short-term obligations consist of notes payable and commercial paper.Notes payable as December 31,2014,totaled $36 million at an average annual interest rate of 5.7 percent,compared with $7 million at an average annual interest rate of 5.7 percent at year-end 2013.Commercial paper borrowings at December 31,2014,were $699 million at an average annual interest rate of 5.7 percent,compared with $217 million at an average annual interest rate of 5.9 percent as of December 31,2013.
Bank lines of credit available to support existing commercial paper borrowings of the corporation amounted to $490 million at both December 31,2014,and 2013.All of these were supported by commitment fees.
The corporation also maintains compensating balances with a number of banks for various purposes.Such arrangements do not legally restrict withdrawal or usage of available cash funds.In the aggregate,they are not material in relation to total liquid assets.
Required:
1.What amount of Gaunt's long-term debt reflected in its current liabilities did Gaunt pay off in 2014?
2.Explain the origin of the $289 figure.
3.During 2014,did Gaunt reduce its average yearly interest requirements on its short-term obligations described in note 5? Do you observe any interesting issues you might want to learn more about? If so,what are they?
4.Do the lines of credit that Gaunt holds at the end of 2014 appear as liabilities on its balance sheet? Explain.

Correct Answer:

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1.The company paid $216 million in 2014....

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