Question
Month Current Assets Fixed Assets Total Assets Jan. $125,000 $250,000 $375,000 Feb. $130,000 $250,000 $280,000 March. $135,000 $250,000 $385,00 April $150,000 $250,000 $400,000 May $150,000
| Month | Current Assets | Fixed Assets | Total Assets |
| Jan. | $125,000 | $250,000 | $375,000 |
| Feb. | $130,000 | $250,000 | $280,000 |
| March. | $135,000 | $250,000 | $385,00 |
| April | $150,000 | $250,000 | $400,000 |
| May | $150,000 | $250,000 | $400,000 |
| June | $125,000 | $250,000 | $375,000 |
| July | $115,000 | $250,000 | $365,000 |
| August | $120,000 | $250,000 | $370,000 |
| Sept. | $115,000 | $250,000 | $370,000 |
| Oct. | $100,000 | $250,000 | $350,000 |
| Nov. | $110,000 | $250,000 | $360,000 |
| Dec. | $115,000 | $250,000 | $365,000 |
Ace's business forms has compiled several factors relative to its financing mix. The firm pays 8 percent on short-term funds and 10 percent on long terms funds. The firms monthly current, fixed and total asset requirments for the previous years are summarized in the table above.
Determine:
A. the monthly average permanent funds requirement B. the monthly average seasonal funds requirement C. the annual financing costs (aggressive strategy) D. the annual financing costs (conservative strategy) E. describe the difference in management action in aggressive versus conservative strategies
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Finance At 40 Financial Intelligence
Authors: MOIRA O'NEILL Moira O'Neill
1st Edition
1408101114, 978-1408101117
