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Collins Systems, Inc., is trying to develop an asset financing plan. The frim has $300,000 in temporary current assets and $200,000 in permanent current assets.

Collins Systems, Inc., is trying to develop an asset financing plan. The frim has $300,000 in temporary current assets and $200,000 in permanent current assets. Collins also has $400,00 in fixed assets. A) Construct two alternative financing plants for the firm. One of the plans should be conservative,with 80% of assets financed by long term sources and the rest financed by short term sources. The other plan should be aggressive,with only 30% of assets financed by short term sources.The current interest rate is 15% on long term funds and 10% on short term financing. Compute the annual interest payments under each plan. B) Given the Collin's earnings before interest & taxes are $180,000, calculate earnings after taxes for each of your alternatives. Assume a tax rate of 40 %. ***NEEDS TO BE DONE IN EXCEL *****

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