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17-10. Marian Pardoo, the chief financial officer of Envirosafe Chemical Company, believes in a moderate approach of financing following the matching principle. Some of the
17-10. Marian Pardoo, the chief financial officer of Envirosafe Chemical Company, believes in a moderate approach of financing following the matching principle. Some of the projected balance sheet accounts of the company for the end of next year follow: Current and Fixed Assets Permanent Current Assets Cash Accounts Receivable Inventory Fixed Assets Total Assets $ 30,000 15,000 130,000 500,000 $ 675,000 $ 15,000 5,000 80,000 $ 20,000 ? Liabilities and Equity Accounts Payable Short-Term Debt Long-Term Debt Common Equity Total Liabilities and Equity ? 450,000 $ 675,000 How much should Marian finance by short-term debt and long-term debt to conform to the matching principle
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