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Snowglobe Central Inc. has total current assets of $250,000 which are comprised of $80,000 temporary current assets and $170,000 permanent current assets. In addition, the
Snowglobe Central Inc. has total current assets of $250,000 which are comprised of $80,000 temporary current assets and $170,000 permanent current assets. In addition, the firm has $300,000 invested in capital assets. Snowglobe wishes to finance all capital assets, all permanent current assets, and half of its temporary current assets with long-term financing. Long-term financing currently costs 12% and short-term financing currently costs 6% Required: Fill in the blanks below and please round to the nearest dollar. ONLY RECORD ROUNDED WHOLE NUMBERSI No decimals, dollar signs, or commas. a. What are the long-term financing costs? b. ASSUMING the long-term financing costs are $45,000, what are the total financing costs? ge Next page
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