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Alex777 [14]
3 years ago
14

Consider the following potential events that might have occurred to Global on December 30, 2010. Global used $20.9 million of it

s available cash to repay $20.9 million of its long-term debt. Which of the following statements is correct?
a. Global used $20.9 million of its available cash to repay $20.9 million of its long-term debt.
b. A warehouse fire destroyed $4.8 million worth of uninsured inventory.
c. Global used $5.4 million in cash and $5.5 million in new long-term debt to purchase a $10.9 million building.
d. A large customer owing $3.5 million for products it already received declared bankruptcy, leaving no possibility that Global would ever receive payment.
e. Global's engineers discover a new manufacturing process that will cut the cost of its flagship product by more than 55%
f. A key competitor announces a radical new pricing policy that will drastically undercut Global's prices.
Business
1 answer:
Debora [2.8K]3 years ago
4 0

Answer:

a. Global used $20 million of its available cash to repay $20 million of its long-term debt.

Explanation:

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Answer:

1. $490,000

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Explanation:

1. The computation of the total amount which is included in the balance sheet is shown below:

= Accounts receivable + Accounts receivable, long term + Land + Patents

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In this the land and patents are recorded in the historical rates

2. The computation of the total amount which is included in the balance sheet is shown below:

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= $481,000

In this all items are recorded in the current rates

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horsena [70]

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Option A, “the substitution effect dominates the income effect” is correct.

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