Answer:
Issuing bonds will be the better option for this company. Mainly because they do not like to give up the control of the company or to change its equity structure.
When the bonds are issued, the company gets the money from the investors and has to pay an agreed amount of interest periodically until maturity of the bond, where the company will have to pay the face value of the bonds.
Explanation:
Answer:
Yes it does because it helps us to be aware on the things that we should know on how to raise the animals with care.
Explanation:
Answer:
$1,000,000
Explanation:
The fund raised by the company through venture capital is $400,000 in return for 40% holding in the company.
Venture capitalist holds 10,000 shares and it represents 40% of total holdings.
Assume that the total value of firm is x. The venture capitalist will hold 40% of total capital which equals to $400,000. The total value of firm will be
40% * x = 400,000
x = 400,000/40%
x = 400,000/0.4
x = 1,000,000
Hence, the after value of firm will be $1,000,000
Answer:
E) $54,700
Explanation:
Cash Balances are determined from Cash Budgets. Thus Prepare a cash Budget as follows :
November
Receipts :
Cash Sale (70%×165,000) $115,500
Credit Sale - October (20%) $39,000
Credit Sale - September (9%) $13,500
$168,000
Payments :
Purchases ($135,000×98%) ($132,300)
Cash disbursements ($36,000)
($168,300)
<u>Reconciliation of Balances</u>
Net Cash Movement ($300)
Opening Balance $55,000
Closing Balance $54,700
