Heing popular theory for managing risk to the firm that arises out of its management of working
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Heing popular theory for managing risk to the firm that arises out of its management of working capital (ht is current assets and content is involves following something called the principle of self-imidating debt How would the principle be applied in each of the following stationa? Explain your responses to each iterative Lungle Homes w chain senior housing complexes in the Seattle, Washington, area. The form is presently doing whether shot borrow short or long term to raise $10 milion in needed funds The funds are to be used to expand the firm's care facilities, which are expected to last 20 years .. Arrow Chemicals needs $5 million to purchase nventory to support its growing sales volume. Arrow does not expect the need for additional inventory to diminish in the future Block Bilding Material. It is reviewing is plans for the coming year and expects that during the method November through January it will need an additional $5 milion to finance the seasonal expansion in inventories and receivables Longleat Homeow a chain of senior housing complexes in the Seattle, Washington area. The firm's presently debating whether show browser or long term to tale $10 milion in needed funds. The funds are to be used to expand the firm's care facilities, which are expected to last 20 years In this case Langical Homes should use soute of financing for its expansion (Select from the drop-down menu) b. Art Chemical ads milion to purchase Inventory to support its growing sales volume Arrow does not expect the need for additional inventory to diminish in the future Its Arrow Chemicals should use W source of financing for its expansion: Select from the drop-down menu c.Blonde Building Materiah, Inc. in mediewing is plans for the coming year and expects that during the monites of Nowmber through January will need an additionwl $5 million to finance the seasonal expansion in inventories and receivables In this case, Blocker Building Materials should use M source of financing for expansion (Select from the drop down menu
Related Book For
Intermediate Accounting
ISBN: 978-0470161012
9th Canadian Edition, Volume 2
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield.
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