Classify each of the following sources of new financing as spontaneous, temporary, or permanent (explain): a. A

Question:

Classify each of the following sources of new financing as spontaneous, temporary, or permanent (explain):
a. A manufacturing firm enters into a loan agreement with its bank that calls for annual principal and interest payments spread over the next four years.
b. A retail firm orders new items of inventory that are charged to the firm’s trade credit.
c. A trucking firm issues to the public and uses the proceeds to upgrade its tractor fleet.

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...