Question

Classify each of the following sources of new financing as spontaneous, temporary, or permanent (explain):
a. A manufacturing firm enters into a loan agreement with its bank that calls for annual principal and interest payments spread over the next four years.
b. A retail firm orders new items of inventory that are charged to the firm’s trade credit.
c. A trucking firm issues common stock to the public and uses the proceeds to upgrade its tractor fleet.



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  • CreatedOctober 31, 2014
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