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ng 17-11. Use the same data given in problem 17-10. Marians boss, Ann Lowell, is the vice president of finance of Envirosafe Chemical Company and
ng 17-11. Use the same data given in problem 17-10. Marians boss, Ann Lowell, is the vice president of finance of Envirosafe Chemical Company and she expects interest rates to decrease in the future and, hence, would like to follow a very aggressive policy using a large amount of short-term debt and a small amount of long-term debt. She would also like to decrease net working capital to $25,000. How much should Ann finance by short- term debt and how much by long-term debt to conform to her aggressive approach? Permanent Current Assets Current and Fixed Assets Cash $ 30,000 Accounts Receivable 15,000 Inventory 130,000 Fixed Assets 500,000 Total Assets $ 675,000 $ 15,000 5,000 80,000 Liabilities and Equity Accounts Payable Short-Term Debt Long-Term Debt Common Equity Total Liabilities and Equity $ 20,000 ? ? 450,000 $ 675,000
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