Why is it helpful to divide the funding needs of a seasonal business into its permanent and

Question:

Why is it helpful to divide the funding needs of a seasonal business into its permanent and seasonal funding requirements when developing a funding strategy?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Principles Of Managerial Finance

ISBN: 978-0136119463

13th Edition

Authors: Lawrence J. Gitman, Chad J. Zutter

See More Books

Question Posted: Mar 05, 2012 04:04 AM

See More Questions

Why is it helpful to put your first draft aside for a while before you begin the editing process?
Why is it helpful to have a wide level of participation in risk management activities?
Why is it helpful to group multiple customer payments onto the same deposit transaction in QuickBooks? A - The program needs this to sequence the payment dates. B- The Internal Revenue Service...
Wilburton Hospital is investigating the possibility of investing in new dialysis equipment. Two local manufacturers of this equipment are being considered as sources of the equipment. After-tax cash...
On October 1, 2015, Spooner Corporation issued $800,000 of 10-year, 5% bonds at 100. Interest is payable semiannually on October 1 and April 1. Spooner's year end is December 31 and the company...
What are the pro and cons of graphic design/media arts? 2. What are the challenges that a person that is studying graphic design/media arts can face? 3. What are two arguable sides to a career in...
What are the most controversial terms of the term sheet? Why are these terms considered to be controversial?
The general ledger of Speedy Ship at June 30, 2012, the end of the companys fiscal year, includes the following account balances before adjusting entries. The additional data needed to develop the...
Analyze the implications of virtual memory in virtualized environments. How do virtualization technologies manage virtual memory for multiple virtual machines, and what is the impact on hypervisors...
Tourist gaze and choice of destination What comes to mind when a person thinks of a holiday destination? Through time, holiday destinations become famous for a specific holiday experience. Choice of...
What is the difference between the firms operating cycle and its cash conversion cycle ?
What are the benefits, costs, and risks of an aggressive funding strategy and of a conservative funding strategy? Under which strategy is the borrowing often in excess of the actual need?
At the beginning of 2015, SD Corporation acquired machinery that cost $100 000 and had an anticipated useful life of 10 years. SD Corporation depreciated this machinery for 2015 and 2016, using the...
List out the top 5 Indian companies in Nifty and discuss about the performance before and after Covid 19? Explain briefly
The Willy Bunker School of Karate has annual fixed operating costs of $24,000. Each student pays $200 in fees; $40 of this amount covers the per student cost of instructional hand-outs and supplies....
An endowment pays $20,000 every year forever with the first payment beginning today. If the discount rate is 5.53%, what is the present value of the endowment?
Kay owns two annuities that will each pay $500 a month for the next 12 years. One payment is received at the beginning of each month while the other is received at the end of each month. At a...
Evaluate the det(A) using any method 1 -2 3 -12] 5 12 -14 19 A = 9 22 -20 31 9 -14 15
Using definitions and actual values in your answers, identify the period of time in which Japan experienced: a) inflation b) disinflation c) deflation. Time % change in consumer prices 2 w Jan-08...
XYZ Inc. a calendar year, accrual basis corporation, had the following items during 2021: Gross revenue from operations Cost of goods sold $420,000 ($180,000) $9,000 LT capital gain .LT capital...
A road map has scale 1 inch = 6 miles. You measure the distance from home to the ski resort you plan to go visit as 11.75 inches. How many miles will you be traveling? What assumptions are you making?
Classify each of the following items as an inflow (I) or an outflow (O) of cash, or as neither(N). Item Cash Accounts payable Notes payable Long-term debt Inventory Fixed assets Change (S) +100...
The following represent financial transactions that Johnsfield & Co. will be undertaking in the next planning period. For each transaction, check the statement or statements that will be...
The following represent financial transactions that Johnsfield & Co. will be undertaking in the next planning period. For each transaction, check the statement or statements that will be...
Deep in space there is an average particle density = 0 . 9 9 cm -3 3 and an extremely low pressure of P 0 = 4 . 9 x 1 0 - 1 -17 N / m 2 . What is the average temperature of ( mostly ) empty space?...
After analyzing the population data of a bacteria colony, a microbiologist determines that the population of the bacterial colony can be modeled by the equation P(t) = 500e0.1t. (a) What is the...
Suppose that the terminal point determined by t is the point (1) on the unit circle. Find the terminal point determined by each of the following. (a) It-t (x, y) = (b) -t (x,y)=([ (x, y) = (c) +t (x,...

Why is it helpful to divide the funding needs of a seasonal business into its permanent and

Question:

Step by Step Answer:

If a firm does not face a seasonal cycle then they will face onl...View the full answer

Principles Of Managerial Finance

Students also viewed these Finance questions