Topic: Working Capital Management Month January February March April May June July August September October November December Ace Business Forms. Current Fixed Assets Assets $125,000 $250,000 130,000 250,000 135,000 250,000 150,000 250,000 250,000 250,000 250,000 Total Assets $375,000 380,000 385,000 400,000 400,000 375,000 365,000 370,000 370,000 350,000 110,000 250,000 360,000 115,000 250,000 365,000 150,000 125,000 115,000 120,000 250,000 115,000 250,000 100,000 250,000 104) Ace's Business Forms has compiled several factors relative to its financing mix. The firm pays 8 percent on short-term funds and 10 percent on long-term funds. The firm's monthly current, fixed and total asset requirements for the previous year are summarized in Table 15.3. Determine: (a) the monthly average permanent funds requirement (b) the monthly average seasonal funds requirement (c) the annual financing costs (aggressive strategy) (d) the annual financing costs (conservative strategy)

Topic : Working Capital Management 104) Ace's Business Forms has compiled several factors relative to its financing mix. The firm pays 8 percent on short-term funds and 10 percent on long-term funds. The firm's monthly current, fixed and total asset requirements for the previous year are summarized in Table 15.3. Determine: (a) the monthly average permanent funds requirement (b) the monthly average seasonal funds requirement (c) the annual financing costs (aggressive strategy) (d) the annual financing costs (conservative strategy) Topic : Working Capital Management 104) Ace's Business Forms has compiled several factors relative to its financing mix. The firm pays 8 percent on short-term funds and 10 percent on long-term funds. The firm's monthly current, fixed and total asset requirements for the previous year are summarized in Table 15.3. Determine: (a) the monthly average permanent funds requirement (b) the monthly average seasonal funds requirement (c) the annual financing costs (aggressive strategy) (d) the annual financing costs (conservative strategy)