
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Transcribed Image Text:South Slope Company is a no-growth
firm. Its sales fluctuate seasonally,
causing total assets to vary from
$1,150,000 to $1,300,000, but fixed
assets remain constant at $900,000. If
the firm follows a maturity matching (or
moderate) working capital policy, what is
the most likely total of long term debt
plus equity capital? 1) $1,300,000 2)
$1,150,000 3) $150,000 4) $250,000 5)
$900,000
South Slope Company is a no-growth firm. Its sales fluctuate seasonally, causing total
assets to vary from $1,150,000 to $1,300,000, but fixed assets remain constant at
$900,000. If the firm follows a maturity matching (or moderate) working capital
policy, what is the most likely total of long term debt plus equity capital?
1) $1,300,000
2) $1,150,000
3) $150,000
4) $250,000
G
5) $900,000
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