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The balance sheet of a borrower shows: Cash 200,000 Accounts Payable 2,100,000 Inventory 1,110,000 Other 90.000 Current Assets 3,500,000 PPE, Net 2,500,000 Note Receivable-Owner 50,000
The balance sheet of a borrower shows: Cash 200,000 Accounts Payable 2,100,000 Inventory 1,110,000 Other 90.000 Current Assets 3,500,000 PPE, Net 2,500,000 Note Receivable-Owner 50,000 Intangible Assets 6.000 Total 6,056,000 Accounts Payable 950,000 CPLTD 200,000 Line of Credit 1,000,000 Misc. Payables 108.000 Current Liabilities 2,258,000 Note Payable-Bank 1,400,000 Other LT Liabilities (non-i) 340,000 Common Stock 1,000,000 Retained Earnings 1.058,000 Total 6,056,000 The company has requested $3,000,000 to fund an acquisition. Using the traditional leverage approach and giving the company an additional $500,000 in Line availability, how much of the acquisition amount can you fund with senior bank debt? (Show your answer to the nearest dollar. For example, $1,234,567.89 should be entered as $1,234,568.) The balance sheet of a borrower shows: Cash 200,000 Accounts Payable 2,100,000 Inventory 1,110,000 Other 90.000 Current Assets 3,500,000 PPE, Net 2,500,000 Note Receivable-Owner 50,000 Intangible Assets 6.000 Total 6,056,000 Accounts Payable 950,000 CPLTD 200,000 Line of Credit 1,000,000 Misc. Payables 108.000 Current Liabilities 2,258,000 Note Payable-Bank 1,400,000 Other LT Liabilities (non-i) 340,000 Common Stock 1,000,000 Retained Earnings 1.058,000 Total 6,056,000 The company has requested $3,000,000 to fund an acquisition. Using the traditional leverage approach and giving the company an additional $500,000 in Line availability, how much of the acquisition amount can you fund with senior bank debt? (Show your answer to the nearest dollar. For example, $1,234,567.89 should be entered as $1,234,568.)
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