What is the level of long-term financing if the working capital financing of the firm to fund all fixed asset and 60% of the permanent current assets with long-term financing? Blue Co. has a P320,000 in fixed asset. The current asset per quarter of the company is shown below:2nd1st3rd4thQuarterQuarterQuarterQuarterCash200,000210,000450,000390,000Accounts Receivable240,000340,000390,000240,000Inventories340,000450,000120,000300,000

Given, Long term financing = 60% * Permanent current assets Permanent current assets = Cash +…

Answered: What is the level of long-term…

What is the level of long-term financing if the working capital financing of the firm to fund all fixed asset and 60% of the permanent current assets with long-term financing?

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Question

What is the level of long-term financing if the working capital financing of the firm to fund all fixed asset and 60% of the permanent current assets with long-term financing?

Blue Co. has a P320,000 in fixed asset. The current asset per quarter of the company is shown below:
2nd
1st
3rd
4th
Quarter
Quarter
Quarter
Quarter
Cash
200,000
210,000
450,000
390,000
Accounts Receivable
240,000
340,000
390,000
240,000
Inventories
340,000
450,000
120,000
300,000

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