Because companies always have inventory and accounts receivable, most banks are happy to make long term loans to support those assets. Either refute or support that statement.
Answer to relevant QuestionsJacob Cornwall has a business in which he’s invested $250,000 of his own money, which is the firm’s only capital. (There are no other equity investors and no debt.) In a recent year the firm had net income of $20,000 for ...Why don't we calculate the total difference in the equity accounts between the beginning and end of the year and consider that difference as a source or use of cash? Why do we similarly exclude the cash account? You're the CFO of the Ramkin Company, which makes and sells electronic equipment. The firm was originally an independent business, but was acquired by the larger BigTech Inc. ten years ago, and is now operated as a division. ...Outline the costs and benefits involved in the trade-off between a tighter versus a looser receivables policy. Describe the difference between a floating and a fixed exchange rate system.
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