Question
For the year ended June 30, 2011, A.E.G. Enterprises presented the financial state- ments below. Early in the new fiscal year, the officers of the
For the year ended June 30, 2011, A.E.G. Enterprises presented the financial state- ments below. Early in the new fiscal year, the officers of the firm formalized a substantial expansion plan. The plan will increase fixed assets by $190 million. In addition, extra inventory will be needed to support expanded production. The increase in inventory is purported to be $10 million. The firms investment bankers have suggested the following three alternative financing plans: Plan A: Sell preferred stock at par, 5%. Plan B: Sell common stock at $10 per share. Plan C: Sell long-term bonds, due in 20 years, at par ($1,000), with a stated interest rate of 8%.
Current assets
cash 50,000
Accounts Receivable 60,000
Inventory 106,000
216,000
In the answer they got 226,000 and just trying to figure out how they got there with the info for the balance sheet.
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