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I write the answer of 17-8, but I don't know how to answer 17-9 17-8. Tony Reynolds, CFO for Ridgeway Building Supplies, has determined that
I write the answer of 17-8, but I don't know how to answer 17-9
17-8. Tony Reynolds, CFO for Ridgeway Building Supplies, has determined that the company would run best if it used the moderate approach to financing. Recently, the company has thought about switching to this approach. The following is a partial balance sheet stating its assets. Permanent current assets are assumed to be 60 percent of the current assets. Cash a. 40,000 6.30, our $ 50,000 Accounts Payable Accounts Receivable 25,000 Notes Payable a. 50,00D b. 60, UUD Inventory 150,000 Long-Term Debt a. 410,000 b.185, ovo Fixed Assets 475,000 Common Equity a. 200,000 b. 425,000 mobbe $ 700,000 sbianos Yogyo san EITT What would the company's financing look like if Tony switched to the moderate approach? Calculate for the following scenarios: a. Accounts payable is $40,000; common equity is $200,000. b. Accounts payable is $30,000; common equity is $425,000. 17-9. Using the information given in problem 17-8, what would Ridgeway Building Supplies' financing look like if Tony decided to use an aggressive approach instead? Accounts payable is $180,000, and common equity is $200,000 C.L> Permanent CA Step by Step Solution
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