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Matching long-term uses of cash with long-term financing sources: Is arequirement. hinking Online Is known as hedging the balance sheet. ng Is the least costly

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Matching long-term uses of cash with long-term financing sources: Is arequirement. hinking Online Is known as "hedging the balance sheet." ng Is the least costly form of financing Makes no sense. Hughes Corporation had the balance sheet shown in Table 5F at the end of last year. The company had net income of $750,000 on sales of $10,000,000, and paid $250,000 in dividends last year. Hughes is at full capacity and considers all its assets, accounts payable, and accrued payables as spontaneous. Assume the net profit margin and dividend payout ratio remain the same this year, and that sales are projected to be $12,000,000 Table 5F - Hughes Corporation Balance Sheet, End-of-last-year (thousands of $) Current assets Current liabilities Cash 200 Accounts payable Accounts receivable 700 Notes payable Inventory 800 Accrued payables Total current assets 1,700 Total current liabilities Fixed assets (net) 2,300 Long-term debt Common stock Retained earnings Total Assets $4,000 Total Liab. + equity 600 250 550 1,400 1,000 900 700 $4,000 Reference: Ref 5-2 Matching long-term uses of cash with long-term financing sources: Is arequirement. hinking Online Is known as "hedging the balance sheet." ng Is the least costly form of financing Makes no sense. Hughes Corporation had the balance sheet shown in Table 5F at the end of last year. The company had net income of $750,000 on sales of $10,000,000, and paid $250,000 in dividends last year. Hughes is at full capacity and considers all its assets, accounts payable, and accrued payables as spontaneous. Assume the net profit margin and dividend payout ratio remain the same this year, and that sales are projected to be $12,000,000 Table 5F - Hughes Corporation Balance Sheet, End-of-last-year (thousands of $) Current assets Current liabilities Cash 200 Accounts payable Accounts receivable 700 Notes payable Inventory 800 Accrued payables Total current assets 1,700 Total current liabilities Fixed assets (net) 2,300 Long-term debt Common stock Retained earnings Total Assets $4,000 Total Liab. + equity 600 250 550 1,400 1,000 900 700 $4,000 Reference: Ref 5-2

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