EXERCISE 3 FINANCIAL NEEDS AND FINANCING REQUIREMENTS A company needs $1 2 million to invest in different types of assets and operating expenses to launch a new line of products With the following information, make a list of the companys financial needs and financing requirements Marketing costs $55,000 Trade receivables $175,000 Depreciation 50,000 Equipment 500,000 Shareholders 200,000 Suppliers 250,000 Inventories 350,000 Profit for the year 100,000 Working capital loan 100,000 Equipment vendors 200,000 Research and development 120,000 Commercial bank 300,000 Differentiate between internal and external financing Give several examples 3 Discuss the concepts of business risk, financial risk, and instrument risk 4 Identify the six Cs of credit 5 How can government agencies help businesses

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Question: EXERCISE 3: FINANCIAL NEEDS AND FINANCING REQUIREMENTS A company needs $1.2 million to invest in different types of assets and operating expenses to launch a

EXERCISE 3: FINANCIAL NEEDS AND FINANCING REQUIREMENTS

A company needs $1.2 million to invest in different types of assets and operating expenses to launch a new line of products. With the following information, make a list of the companys financial needs and financing requirements.

Marketing costs	$55,000	Trade receivables	$175,000
Depreciation	50,000	Equipment	500,000
Shareholders	200,000	Suppliers	250,000
Inventories	350,000	Profit for the year	100,000
Working capital loan	100,000	Equipment vendors	200,000
Research and development	120,000	Commercial bank	300,000

Differentiate between internal and external financing. Give several examples.

3. Discuss the concepts of business risk, financial risk, and instrument risk.

4. Identify the six Cs of credit.

5. How can government agencies help businesses?

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