Below are the latest financial statements of Z&M Company:

Z&M Company Income Statement ($ millions)
Sales revenue		$1,974
Cost of sales		1,117
Gross profit		$ 857
Operating expenses		737
Operating profit		$ 120
Interest expenses		39
Income tax expense		20
Net income		$ 61

	Z&M Company Balance Sheet ($ millions)
Current assets
Cash		$ 18
Accounts receivable		154
Inventory		267
Total current assets				$ 439
Long-term assets
Property, plant & equipment, net		$ 444
Other assets		337
Total long-term assets				781
Total assets				$1,220
Current liabilities
Trade creditors		$ 143
Short-term bank loans		100
Total current liabilities				$ 243
Long-term debt				550
Total liabilities				$ 793
Common shares (31 million)		$ 31
Retained earnings		396
Total equity				427
Total liabilities & equity				$1,220

Required

a) The shareholders want to purchase another business for $25 million. The company does not want to use the cash they have in the business cash account. Provide a strategy on how the company can source the funds to purchase the $25 million business.

Answer rating: 100% (QA)

Question Answer a The shareholders want to purchase another business for 25 million General ... View the full answer