Task Question\ You have invested

$6,000

in plant improvements and financed

$6,000

Long-Term debt to pay for it. You have also elected to retire

$6,000

of Long-Term Debt. Now, your closing cash position reads

-$3,000

.\ Retire\ Long\ Term Debt $0\ Incorrect!\ The

$6,000

Long-Term Debt you initially issued was a solid financial decision to pay for operations (plant improvements). Borrowing any more, or less is avoiding the real issue - it is generally bad practice to borrow and pay-back at the same time. Try something else.

Task Question You have invested $6,000 in plant improvements and financed $6,000 Long-Term debt to pay for it. You have also elected to retire $6,000 of Long-Term Debt. Now, your closing cash position reads $3,000. Closing Cash Position Incorrect! The $6,000 Long-Term Debt you initially issued was a solid financial decision to pay for operations (plant improvements). Borrowing any more, or less is avoiding the real issue - it is generally bad practice to borrow and pay-back at the same time. Try something else