Table 14.3
-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 14.3.
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)

Question

Table 14.3 
-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 14.3.
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)

Quizplus · Accepted Answer

The Answer of Table 14.3 
-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 14.3.
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)

Table 14.3 -Ace's Business Forms Has Compiled Several Factors Relative to Its