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andre [41]
3 years ago
6

Wolf Den Craft Beers projects that it will need​ $50 million in total assets to meet the sales projection of​ $65 million. The p

ro forma balance sheet shows accounts​ payable, $8​ million, accrued​ expenses, $2​ million, longminusterm ​debt, $10 million and​ equity, $25 million. If Wolf Den decides to meet discretionary financing needs with 5 year notes​ payable, how much will it need to​ borrow?
Business
1 answer:
ivanzaharov [21]3 years ago
7 0

Answer:

$5 million

Explanation:

As we know the asset is financed from two capital sources equity and liability.

Using Accounting equations as follow

Assets = Equity + Liabilities

Total Assets Value = Equity Value + ( Account Payable + Accrued expenses + Long-Term Debt )

As we both sides are not equal, asset are more that the sum of equity and liabilities so we need more borrowing to finance the assets.

$50 million = $25 millions + ( $8 million + $2 million + $10 million ) + Additional Borrowing

$50 million = $25 millions + $20 million + Additional Borrowing

$50 million = $45 millions + Additional Borrowing

Additional Borrowing = $50 million - $45 millions

Additional Borrowing = $5 million

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D. $5,000

Explanation:

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Taxes are also seen in the creation of deadweight loss because they prevent people from engaging in purchases they'd otherwise make because the ultimate price of the merchandise is above the equilibrium value. If taxes on an item rise, the burden is commonly split between the producer and therefore the consumer, resulting in the producer receiving less cash in on the item and therefore the customer paying the next price.

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You come across a scientific study reported in the New York Times. The study says that adults who played varsity sports in high
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There is no short answer.

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The main difference between storage warehouses and distribution warehouses is that storage warehouses are relatively small, spec
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