Question: Use the information below for this assignment. Comfin Company has estimates on its level of current and total assets for the next two years: Year

Use the information below for this assignment. Comfin Company has estimates on its level of current and total assets for the next two years:

Year 201X

Jan

Feb

Mar

Apr

May

June

July

Aug

Sep

Oct

Nov

Dec

Total Assets

$500, 000

$475, 000

$460, 000

$470, 000

$475, 000

$485, 000

$495, 000

$555, 000

$600, 000

$650, 000

$700, 000

$750, 000

Current Assets

$250, 000

$220, 000

$199, 900

$204, 698

$204, 392

$208, 980

$213, 459

$262, 829

$307, 085

$351, 227

$395, 251

$439, 156

Year 201X + 1

Jan

Feb

Mar

Apr

May

June

July

Aug

Sep

Oct

Nov

Dec

Total Assets

$600, 000

$570, 000

$552, 000

$564, 000

$570, 000

$582, 000

$594, 000

$660, 000

$720, 000

$780, 000

$840, 000

$900, 000

Current Assets

$350, 000

$350, 000

$352, 100

$359, 302

$365, 608

$373, 020

$380, 541

$397, 171

$412, 915

$428, 773

$444, 749

$460, 844

Estimate the levels of permanent and temporary current assets for Comfin over these months. Find the average amount for fixed assets, permanent current assets, and temporary current assets in the year 201X and year 201X + 1.

What average amounts of short-term and long-term financing should Comfin have during each year if it wants to follow a maturity-matching financing strategy over time?

What average amounts of short-term and long-term financing should Comfin have during each year if it wants to follow an aggressive financing strategy over time?

Suppose Comfins cost of short-term funds is 8 percent and its cost of long-term funds is 15 percent. Use your answers in (b) and (c) to compute the cost of each strategy.

What are the pro and con arguments toward each strategy in terms of profitability, risk, and company liquidity?

Submit your answer in a Microsoft Excel file, showing step-by-step solutions to all calculations.

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