The balance sheet for the Long Drive Golf Company on September 30,2010 is presented below: Long Drive Golf Company Balance Sheet September 30,2010 The treasurer of the firm wants to issue $1,200,000 in long-term bonds to be used as follows: 1.$240,000 to reduce accounts payable 2.$192,000 to retire notes payable 3.$128,000 to increase cash on hand 4.$640,000 to increase inventories a.Assuming that the loan is obtained,construct a pro forma balance sheet for December 31,2010,for Long Drive Golf Company that reflects the use of the funds provided. b.Was the liquidity of Long Drive Golf Company improved by the loan?

Question

The balance sheet for the Long Drive Golf Company on September 30,2010 is presented below: Long Drive Golf Company Balance Sheet September 30,2010  The treasurer of the firm wants to issue $1,200,000 in long-term bonds to be used as follows: 1.$240,000 to reduce accounts payable 2.$192,000 to retire notes payable 3.$128,000 to increase cash on hand 4.$640,000 to increase inventories a.Assuming that the loan is obtained,construct a pro forma balance sheet for December 31,2010,for Long Drive Golf Company that reflects the use of the funds provided. b.Was the liquidity of Long Drive Golf Company improved by the loan?

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The Answer of The balance sheet for the Long Drive Golf Company on September 30,2010 is presented below: Long Drive Golf Company Balance Sheet September 30,2010  The treasurer of the firm wants to issue $1,200,000 in long-term bonds to be used as follows: 1.$240,000 to reduce accounts payable 2.$192,000 to retire notes payable 3.$128,000 to increase cash on hand 4.$640,000 to increase inventories a.Assuming that the loan is obtained,construct a pro forma balance sheet for December 31,2010,for Long Drive Golf Company that reflects the use of the funds provided. b.Was the liquidity of Long Drive Golf Company improved by the loan?

The Balance Sheet for the Long Drive Golf Company on September