Rudolf Supplies is a seasonal gift business that makes most of its sales between October and...
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Rudolf Supplies is a seasonal gift business that makes most of its sales between October and December. The company approaches you in June to discuss financing for the purchase of inventory and subsequent cash flow variations through its busy season. Which finance source would suit this need best? O Sale of additional shares to existing shareholders, with the intention of repaying this after the busy trading period is over. OA line of credit made available to the company beginning in August for a 6-month period. OA short-term loan repayable in equal monthly instalments over a 6 month period, with the final payment due in December OA loan repayable in 5 years time, so that the finance need is covered for an extended period. Rudolf Supplies is a seasonal gift business that makes most of its sales between October and December. The company approaches you in June to discuss financing for the purchase of inventory and subsequent cash flow variations through its busy season. Which finance source would suit this need best? O Sale of additional shares to existing shareholders, with the intention of repaying this after the busy trading period is over. OA line of credit made available to the company beginning in August for a 6-month period. OA short-term loan repayable in equal monthly instalments over a 6 month period, with the final payment due in December OA loan repayable in 5 years time, so that the finance need is covered for an extended period.
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The question presents a scenario in which Rudolf Supplies a seasonal business with high sales activity from October to December seeks financing to man... View the full answer
Related Book For
Advanced Financial Accounting
ISBN: 978-0078025624
10th edition
Authors: Theodore E. Christensen, David M. Cottrell, Richard E. Baker
Posted Date:
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