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patriot [66]
3 years ago
9

As a result of cash flow shortages, Millard's Department Stores has fallen behind in payments to suppliers. Some suppliers are w

ithholding shipments to Millard's until they receive payments on overdue accounts. To meet their immediate needs, Millard's Department Stores should utilize:A. vulture capital.B. long-term financing.C. contingency capital.D. short-term financing.
Business
1 answer:
aleksandr82 [10.1K]3 years ago
8 0

Answer:

D. short-term financing

Explanation:

Based on the information provided within the question it seems that in this scenario Millard's Department Stores should utilize short-term financing. This is a short term loan (usually less than one year) that you can use for you daily business operations. Which is exactly what Millard's Department Store needs in order to pay off the suppliers to continue receiving payments and continue it's business operations to make money.

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Debt to equity = Total Debt / Total equity

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