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Exercise 10-25A Determining the effects of financing alternatives on ratios Clayton Industries has the following account balances: -8 Current assets Noncurrent assets $20,000 Current Ilablities

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Exercise 10-25A Determining the effects of financing alternatives on ratios Clayton Industries has the following account balances: -8 Current assets Noncurrent assets $20,000 Current Ilablities 80,000 Noncurrent lIlabilitles $10,000 50,000 0,000 Stockholders' equity The company wishes to raise $40,000 in cash and is considering two financing options: Clayton can sell S40,000 of bonds payable, or it can issue additional common stock

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