C Company is a no-growth firm. Its annual sales fluctuate seasonally from $1,200,000 to $1,997,851, causing its current assets to vary from $146,206 to $200,740, but fixed assets remain constant at $316,765. If the firm follows a moderate (or maturity matching) working capital financing policy, what is the most likely total amount of long-term financing (that is, long-term debt plus equity capital) to support the company's working capital requirements? Round your answer to the nearest dollar, but do not include $ in your answer, e.g., xxx,xxx. Answer:

C Company is a no-growth firm. Its annual sales fluctuate seasonally from $1,200,000 to $1,997,851, causing its current assets to vary from $146,206 to $200,740, but fixed assets remain constant at $316,765. If the firm follows a moderate (or maturity matching) working capital financing policy, what is the most likely total amount of long-term financing (that is, long-term debt plus equity capital) to support the company's working capital requirements? Round your answer to the nearest dollar, but do not include $ in your answer, e.g., xxx,xxx. Answer:

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter16: Working Capital Policy And Short-term Financing

Section: Chapter Questions

Problem 8P

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