Question
Company policy at Edson Enterprises is to finance all seasonal increases in net working capital with a line of credit. The companys controller collected the
Company policy at Edson Enterprises is to finance all seasonal increases in net working capital with a line of credit. The companys controller collected the following information:
|
| Current Assets (CAD) | Current Liabilities (CAD) |
| 2019 (Actual) |
|
|
| Quarter 1 | 72,120 | 21,450 |
| Quarter 2 | 92,950 | 28,950 |
| Quarter 3 | 63,500 | 21,870 |
| Quarter 4 | 53,400 | 12,950 |
| 2020 (Forecast) |
|
|
| Quarter 1 | 79,140 | 24,950 |
| Quarter 2 | 96,250 | 30,100 |
| Quarter 3 | 68,570 | 24,860 |
| Quarter 4 | 62,350 | 18,560 |
The most appropriate credit limit for Edsons line of credit in 2020 is closest to
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Advanced Accounting
Authors: Gail Fayerman
1st Canadian Edition
9781118774113, 1118774116, 111803791X, 978-1118037911
