Table 14.2 Flum Packages, Inc. Assets Liabilities & Equity Current assets $12,00
ID: 2814817 • Letter: T
Question
Table 14.2
Flum Packages, Inc.
Assets
Liabilities & Equity
Current assets $12,000
Current Liabilities $ 5,000
Fixed assets 18,000
Long-term debt 12,000
Equity 13,000
Total $30,000
Total $30,000
27) The company earns 5 percent on current assets and 15 percent on fixed assets. The firm's current liabilities cost 7 percent to maintain and the average annual cost of long-term funds is 20 percent.
The firm's initial net working capital is ________. (See Table 14.2)
A) $ 5,000. B) $10,000. C) $7,000. D) -$ 5,000.
28) The beta of the market
A) is less than 1. B) is greater than 1.
C) is 1. D) cannot be determined.
Explanation / Answer
27. net working capital = current assets - current liabilities = 12,000 - 5,000 = 7,000
28. is 1
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.