Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Business Law & Ethics Expert

Swim Suits Unlimited is in a highly seasonal business and the given summary balance sheet data exhibit its assets and liabilities at 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

Total assets $690 $620

Payables and accruals $ 30 $ 10

Short-term bank debt 50 0

Long-term debt 300 300

Common equity 310 310

Total claims $690 $620

From this data we might conclude that:

a) Swim Suit's current asset financing policy calls for precisely matching asset and liability maturities.

b) Swim Suit's current asset financing policy is relatively aggressive; that is, the company finances some of its permanent assets with the short-term discretionary debt.

c) Swim Suits follows a relatively conservative approach to current asset financing; that is, some of its short-term requirements are met by permanent capital.

d) Devoid of income statement data, we can't find out the aggressiveness or conservatism of the company's current asset financing policy.

e) Devoid of cash flow data, we can't find out the aggressiveness or conservatism of the company's current asset financing policy.

Business Law & Ethics, Finance

  • Category:- Business Law & Ethics
  • Reference No.:- M915782

Have any Question? 


Related Questions in Business Law & Ethics

Emergency managementthe emergency management helps during

Emergency Management The Emergency Management helps during the migration phase which will help with the actual preparations of any natural disaster approaching and being prepared for any terrorism threat in a community. ...

Question 1 on what basis does the government allow some

QUESTION 1: On what basis does the government allow some people to be paid sub-minimum wages and others not? Why not allow anyone who has difficulty getting work or is unemployable to work at sub-minimum wages? What abou ...

Assignment - environmental issues faced by business and

Assignment - Environmental Issues Faced by Business and Society Research and explain the importance of an environmental issue (fracking, hazardous waste disposal, oil pipeline leaks, deforestation, etc.) faced by busines ...

Assignment business ethicswatch john q new line cinema 2002

Assignment Business Ethics Watch John Q. (New Line Cinema, 2002, 112 minutes) - Answer the following questions in as much detail as possible. Include references to characters and situations in the movie as necessary. (Su ...

Please answer the following questions in your own words

Please answer the following questions, in your own words. Pretend you are explaining the concepts to someone who knows something about business but very little about law. Each of these five questions can be answered in t ...

As the current athletic director at an ncaa division i

As the current athletic director at an NCAA Division I university, you are in the process of negotiating an employment contract with Will Wynn, your new head football coach. In an essay of 500-750 words, answer the follo ...

As this class draws to an end you covered a vast amount of

As this class draws to an end, you covered a vast amount of material pertaining to business law. From the classifications of law, contract formation, illegal agreements and various types of property, to business ethics, ...

As terrorists step up the methodology and the atrociousness

As terrorists step up the methodology and the atrociousness of subsequent acts and the government responds with ever-increasing surveillance, intelligence gathering, searches, and directives, many feel that there is an e ...

Below is a fictitous act i need to use to answer the

BELOW IS A FICTITOUS ACT I NEED TO USE TO ANSWER THE QUESTION  The Importation of Prohibited Substances Act 2012 (Cth) is fictitious. In June 2012, the Commonwealth Parliament passed the Importation of Prohibited Substan ...

Read the following fraud case first nationwide bank v gelt

Read the following fraud case: First Nationwide Bank v. Gelt Funding Corp., 820 F. Supp 89 (1993) Prepare a case brief of this case. Include the following components: Case name and citation The procedural history - what ...

  • 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