Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

problem1: Ski Lifts Inc. is a highly seasonal business. The following summary balance sheet provides data for peak and off peak seasons [in thousands of dollars]:

 

       Peak   Off-peak

 

                     Cash         

        $ 50 

   $ 30 

                     Marketable securities

   0     

 20

                     Accounts receivable

    40 

     20

                     Inventories       

    100    

  50

                     Net fixed assets   

   500 

    500

 

    $690

    $620

                     Spontaneous      

 

 

                       liabilities 

       $ 30

    $ 10

                     Short-term debt

        50   

    0

                     Long-term debt   

     300

     300

                     Common equity     

    310  

   310

 

  $690 

   $620

From this information we may conclude that

[A] Ski Lifts have a working capital financing policy of exactly matching asset and liability maturities.

[B] Ski Lifts' working capital financing policy is relatively aggres­sive; that is, the company finances some of its permanent assets with short term discretionary debt.

[C] Ski Lifts follow a relatively conservative approach to working capital financing; that is, some of its short-term needs are met by permanent capital.

[D] Without income statement data, we cannot determine the aggressiveness or conservatism of the company's working capital financing policy.

[E] Both statements A and C are correct.

problem2:  Which one of the following aspects of banks is considered most relevant to businesses when choosing a bank?

[A] Size of the bank's deposits.

[B] Experience of personnel.

[C] Loyalty and willingness to assume lending risks.

[D] Convenience of location.

[E] Competitive cost of services provided

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M919515

Have any Question? 


Related Questions in Basic Finance

1 how can an investor increase the amounts that they save2

1. How can an investor increase the amounts that they save? 2. How can investors benefit from the compounding of interest (time value of money)? 3. Match the objectives to the different types of investment groups (money ...

Explain the difference between path-dependent options and

Explain the difference between path-dependent options and path-independent options and give examples of each ? Give an example of a situation in which someone might wish to use a barrier option ? Explain the advantages a ...

The yield on zero-coupon bonds are as followsus yen 1

The yield on zero-coupon bonds are as follows: U.S.$ % Yen % 1 year    3.00       5.00 2 years   3.50       6.00 A young investment banker considers issuing a bond for ¥100 million. The interest or coupon is paid on year ...

In the capm investors should be compensated for accepting

"In the CAPM, investors should be compensated for accepting systematic risk; for the APT model, investors are rewarded for accepting both systematic risk and unsystematic risk." Do you agree with this statement?

1 what are some of the factors that make up a communitys

1. What are some of the factors that make up a community's economic profile? How do these factors influence that community's disaster risk? 2. Visit FEMA's disaster declaration archive at http://www.fema.gov/news/disaste ...

Excel assignmentsthis assignment is to develop an excel

Excel Assignments This assignment is to develop an Excel Spreadsheet for a company. The spreadsheet should include instructions on how to enter in the inputs. (For example, should the initial investment be entered in as ...

1 what industrial and national capital structure patterns

1. What industrial and national capital structure patterns are exhibited globally? What factors seem to be driving these patterns? 2. What is the observed relationship between debt ratios and profitability, and the perce ...

1 why do researchers use factor analysis2 imagine that you

1. Why do researchers use factor analysis? 2. Imagine that you conducted a factor analysis on a set of variables that were uncorrelated with one another. How many factors would you expect to find? Why?

Is wall street a casino or an investment in the future and

Is Wall Street a casino or an investment in the future and why? Use examples to back your stances? What do you fear the most about Wall Street and investing in the stock market? Have you learned anything in this module t ...

1 some consumers force themselves to save money by

1. Some consumers force themselves to save money by depositing a portion of their paycheck into a savings account. They deposit the remainder into a checking account and then only spend the money in the checking account. ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro