Question:

"We really need to get this new material - handling equipment in operation just after the new year begins. I hope we can finance it largely with cash and marketable securities, but if necessary we can get a short term loan down at Metro bank". This Statement by Beth Davies -Lowry president of Global Electronics Company, concluded a meeting she had called with the firm 's top management. Global is a small, rapidly growing wholesaler of consumer electronic products. The firm's main product lines are small kitchen appliances and power tools. Maria Wilcox, Global Electronics general manager of marketing has recently completed a sales forecast. She believes the company's sales during the first quarter of 2021 will increase by 10% each month over the previous month s' sales. Than Wilcox expects sales to remain constant for several months. Global 's projected balance sheet as of Dec 31 2020 is as follow:

Cash some Me reeeiyable 540,000 Marketable securities 30,000 Inventory 303,000 Building and equipment (net of accumulated depreciation} 1,252,000 Total assets 2,200,000 He payable 352,300 Bonds interest payable 25,000 Property tax payable 2,200 Bonds Payable ("10% due in 2025} 000,000 Common stock 1,000,000 Retained earnings 215,000 Total liabilities and stockholders" equity 2,200,000