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Consider the following potential events that might have occurred to Global on December 30, 2016. For each one, indicate which line items in Global's balance

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Consider the following potential events that might have occurred to Global on December 30, 2016. For each one, indicate which line items in Global's balance she would be affected and by how much. Also indicate the change to Global's book value of equity a. Global used $20.4 million of its available cash to repay $20.4 million of its long-term debt b. A warehouse fire destroyed 54.6 million worth of uninsured inventory c. Global used $5.5 million in cash and $4.9 million in new long-term debt to purchase a $10.4 million building d. A large customer owing $2.6 million for products it already received declared bankruptcy, leaving no possibility that Global would ever receive payment. e. Globals engineers discover a new manufacturing process that will cut the cost of its flagship product by more than 45%. 1. A key competitor announces a radical new pricing policy that will drastically undercut Global's prices. a. Global used $20.4 million of its available cash to repay $20.4 million of its long-term debt. (Select the best choice below) O A. Long-term liabilities would increase by 520 4 milion, and cash would increase by the same amount. The book value of equity would be unchanged. B. Long-term liabilities would decrease by $20 4 million, and cash would increase by the same amount. The book value of equity would be unchanged. O C. Long-term liabilities would decrease by $20.4 million, and cash would decrease by the same amount. The book value of equity would be unchanged. OD. Long-term liabilities would decrease by $20.4 million, and cash would decrease by the same amount. The book value of equity would change by $20.4. b. A warehouse fire destroyed 54 6 million worth of uninsured inventory. (Select the best choice below.) O A. Inventory would increase by 54.6 million, and the book value of equity would decrease by the same amount Click to select your answer Consider the following potential events that might have occurred to Global on December 30, 2016. For each one, indicate which line items in Global's balance she would be affected and by how much. Also indicate the change to Global's book value of equity a. Global used $20.4 million of its available cash to repay $20.4 million of its long-term debt b. A warehouse fire destroyed 54.6 million worth of uninsured inventory c. Global used $5.5 million in cash and $4.9 million in new long-term debt to purchase a $10.4 million building d. A large customer owing $2.6 million for products it already received declared bankruptcy, leaving no possibility that Global would ever receive payment. e. Globals engineers discover a new manufacturing process that will cut the cost of its flagship product by more than 45%. 1. A key competitor announces a radical new pricing policy that will drastically undercut Global's prices. a. Global used $20.4 million of its available cash to repay $20.4 million of its long-term debt. (Select the best choice below) O A. Long-term liabilities would increase by 520 4 milion, and cash would increase by the same amount. The book value of equity would be unchanged. B. Long-term liabilities would decrease by $20 4 million, and cash would increase by the same amount. The book value of equity would be unchanged. O C. Long-term liabilities would decrease by $20.4 million, and cash would decrease by the same amount. The book value of equity would be unchanged. OD. Long-term liabilities would decrease by $20.4 million, and cash would decrease by the same amount. The book value of equity would change by $20.4. b. A warehouse fire destroyed 54 6 million worth of uninsured inventory. (Select the best choice below.) O A. Inventory would increase by 54.6 million, and the book value of equity would decrease by the same amount Click to select your

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