Final answer:
Franklin Industries should classify long-term liability as current liability if it's due within one year to reflect short-term financial obligations accurately on the balance sheet.
Step-by-step explanation:
Franklin Industries should report long-term liability as current liability on their 2022 year-end classified balance sheet if the long-term debt is due for repayment within the upcoming year. This reclassification is essential because the portion of long-term debt that is due within one year is considered current liability, and it indicates the amount of debt that the company needs to pay in the near term. The rationale behind this treatment is to give a clear picture of the company's short-term financial obligations to readers of the financial statements, including investors and creditors.