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

When the adjustable mirror on the michelson interferometer

When the adjustable mirror on the Michelson Interferometer is moved 20 wavelengths, how many fringe pattern shifts would be counted?

Starz inc pays a constant dividend of 16 for next 18 years

STARZ INC pays a constant dividend of $16 for next 18 years then will stop paying dividends forever. If investors require a return of 8.3% on this stock, what is the value of the STARZ stock? Write in the value with two ...

Ims limited issues a partly convertible debenture for 1000

IMS Limited issues a partly convertible debenture for 1000, carrying an interest rate of 10 percent. 360 will get compulsorily converted into two equity shares of IMS Limited a year from now. The expected price per share ...

Normas cat food of shell knob ships cat food throughout the

Norma's Cat Food of Shell Knob ships cat food throughout the country. Norma has determined that through the establishment of local collection centers around the country, she can speed up the collection of payments by two ...

1 under what conditions might a property with an assumable

1. Under what conditions might a property with an assumable loan sell for more than comparable properties with no assumable loans available? 2. What is meant by the incremental cost of borrowing additional funds? 3. Is t ...

1 researchers who use group designs replicate their

1. Researchers who use group designs replicate their findings by repeating the same (or a similar) experiment on other samples of participants. How do single-case researchers replicate their findings? 2. What is the rati ...

1 comment on the following statement a key benefit of

1. Comment on the following statement: A key benefit of leasing is that it allows for the effective depreciation of land. 2. How would the availability of floating-rate debt rather than fixed-rate debt affect the lease-v ...

Ethical dilemma the irs tax code allows for the deduction

Ethical Dilemma. The IRS tax code allows for the deduction of expenses incurred in traveling to a job interview. Sean, Erica, and their two children have used this deduction to fund their vacations for the last eight yea ...

The suboptimal glass company uses a process of capital

The Suboptimal Glass Company uses a process of capital rationing in its decision making. The firm's cost of capital is 10 percent. It will only invest $77,000 this year. It has determined the internal rate of return for ...

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 and ...

  • 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

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

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen